Headlines:
- This week normal trading hours through Wednesday. Thursday Thanksgiving Day – no markets. No night markets, as they resume trade at 8:30 a.m. Friday morning, closing early at 12:05 (All Central Time).
- soybean futures soar on Chinese commodity bounce
Chinese markets seem to be back in the driving seat, as buying returns to the Chinese commodity sector. Speculators got their fingers burned last week, as the Chinese government stepped in to slow down the pace of commodity speculations, but it appears the buyers are back, helped by the steady decline in the yuan, which is plumbing eight-and-a-half year lows against the dollar In China, palm oil, soyoil, and soybean prices rallied, as January Dalian soybeans over 1%, to a six-day high of 3,794 yuan a tonne, before trimming gains a touch, to settle at 3,753 yuan. And in Malaysia, palm oil prices rose despite some bearish data. “Although Malaysian palm oil exports for the period Nov 1-20 are seen more than 8% lower than last month, palm oil futures prices rallied 1.7%,” noted CRM AgriCommodities. “The weakness in the ringgit, a rally across the Chinese futures exchange and the vegoil complex were the main catalysts,” CRM said.
Summary:
The grain markets were all up again today. March Beans was up almost 30 cents closing at 1029.25, Wheat waffled around for a good portion of the day but was able to eventually gets is legs and add 1.25 cents. Corn rounded out the day adding 4.25 cents to its Friday close. This week markets will be close on Thursday and will close early on Friday. We expect light volume for this abridged week.
On Friday the CFTC released it Commitment of Traders’ report and the general consensus was that the date was generally bearish. When the market got the opportunity to respond today that is not how the price action played out. The strength in demand continues to rule trading decisions as of late and Soybean futures responded particularly strong today.
General market consensus is that the Trump administration is going to make for a really strong US Dollar. Given that backdrop it appears that China is loading up on US Beans ahead of a perceived currency crisis.
Crude Oil was also on the advance today ahead of the Thanksgiving Holiday and the OPEC meeting that is scheduled for November 30th. This holiday, analysts are expecting record numbers of travelers and it seems that Crude Oil futures are taking advantage of the projected demand.
