Written Commentary
MORNING COMMENTS
Ag Fundamentals:
Corn spreads have pulled in from there carry lows thanks to lower yield estimates, exports to Mexico and unknown destination and high ethanol usage. Roll season is upon us being half way through the month of November. A strong US dollar and weaker crude oil prices has demand holding most of the weight. I imagine next week we see positions roll to the March. Soybean oil is attempting to make a comeback here today. News of the new administration pressuring used cooking oil imports and a spike in Malaysian palm oil futures overnight are helping support that market. There is a lot of option interest all the way down to $9 beans. No weather issues to report right now. South America is in good shape, and the soil Moisture map in the US is looking much better today than weeks ago.
Weather:
The drought monitor map in the US has improved week over week. Oklahoma and Kansas in particular benefited from recent rains. The Ohio River Valley and Central Illinois also improves from last week and river level forecasts have adjusted to the data. Memphis will have adequate water flowing the rest of November into December.
Weekly Export Sales
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Export & World News
The US reported 176K MT of soybeans sold yesterday in a flash sale to unknown destinations. Japan bought 114K MT of food quality wheat for the US. We also sold 65K MT of animal feed wheat to South Korea.
Malaysian palm oil futures were up 124 ringgit overnight, at 5088.
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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