Headlines:

  • President-elect Trump announced that Reince Preibus is going to be his chief of staff & Stephen Bannon as chief White House strategist
  • The CFTC Commitment of Traders report will be released today instead of Friday because of the Veteran’s Day holiday.
  • Cocoa futures plumb new lows, as Ivorian farmers deliver more beans
    Cocoa futures plumbed new three-year lows, as the farmers in West Africa deliver beans at well above last year’s pace, after a slow start. Farmers in Cote D’Ivoire, the world’s top cocoa grower, delivered 64,000 tonnes of beans to the ports of Abidjan and San Pedro, in the week to November 13. This compares to deliveries of 47,000 tonnes at the same time last year.
  • soybean futures trim losses on strong US exports

The AG markets got off to a bearish start, as prices in China tumbled. The Chinese government has stepped in to restrict the boom in agricultural prices there, by raising trading fees, and increasing margin requirements. “There is even an unconfirmed rumor that the most well-known speculative fund manager was arrested,” said Darrell Holaday, at Country Futures. “Fears of more government measures to reduce speculation had investors’ liquidation positions,” said Kim Rugel, at Benson Quinn Commodities.

 Summary:

The US Dollar was up big today hitting price targets that we have projected weeks ago. Today the greenback reached prices that were last seen in early December 2015. The initial AG response was lower prices for Corn, Wheat and Beans but it was Wheat that remained the weakest when regular session closed today. Both Corn and Beans finished well off of the day’s lows and were only down by small amounts. New exports sales served to offset the price pressure. Private exporters reported the following activity to the USDA:

  • Export sales of 324k metric tons of Soybeans for delivery to China for the 2016-17 marketing year
  • Export sales of 132k metric tons of Soybeans for delivery to unknown for the 2016-17 marketing year

The NOPA Crush report is due out tomorrow, November 15th.

December Crude Oil pushed lower touching our minimum price objective of 43 before turn back up on the day. We believe that it can make a push down to about 40 but the bounce off the low today could price to be significant.

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