Wednesday, November 20, 2019      
Morning Markets: Corn -2Beans +2.  Wheat -2.

Corn, soybeans, and wheat all finished yesterday's session on the positive side as light buying surfaced in each commodity. This was mostly from technical short covering as fundamentally; nothing has changed in the market. We are seeing some demand build on corn though, which is a good sign. There are a few reasons for this demand, with the fact corn values have been on a consistent down move being a primary one. Another reason may be the low-test weight being reported on this year's later harvested bushels. We could be seeing a sudden increase in exports as buyers want to secure as much old crop as possible before this corn makes it into the supply line. This is not uncommon in year's with suspect quality. The fact we are seasonally at a point where demand does increase is also positive for corn exports. That said, we have a lot of lost ground to cover before corn demand can be considered bullish. Wheat also benefitted from technical buying as the contract dipped to major resistance. Soybeans are the commodity that needs to be closely monitored from a technical side as the January contract has formed a double bottom at the $9.10 point, which was also the overnight low. Trade will again focus on all these topics today, as well as any fresh news on US trade developments.

Crude Oil is up $0.09 at $55.30.                           
US Dollar is up $0.141 at $97.997.
Global Equities: Japan -0.3%, China -0.8%, and Europe -0.7%.
Dow futures down 102 points at 27,934.
EU MATIF Exchange: Corn +0.2% and Wheat -0.3%.
Malaysian Palm Oil: +2.9%.

  • Weather models continue to show ample rainfall over the next 7-10 days for Brazil and Argentina. Almost daily showers will blanket the northern areas of Brazil with total accumulation up to 4 inches in some areas. Argentina is expected to receive above normal rainfall.
  • Canadas largest railroad, the CN, are still on strike. 3,000 union conductors and yardmen walked off the job. CN service in the US will continue to operate as normal while Canadian operations are severely hampered.
  • Concerns remain over US/China trade negotiations. Yesterday President Trump threatened even higher tariffs on Chinese goods if the country does not make a “phase 1" deal. Most traders believe the negotiations will drag on until December 15th, when the next round of tariffs is slated to start.
  • China’s foreign ministry is criticizing the U.S. after the Senate passed legislation yesterday aimed at protecting human rights and supporting Hong Kong protesters. That bill now proceeds to the House, which already approved its own version of the bill in October. The Senate also passed a second bill that would ban the export of certain crowd-control munitions to Hong Kong police forces. It bans the export of items such as tear gas, pepper spray, rubber bullets and stun guns.
  • The average trade estimate for Friday’s Cattle on Feed Report has the number of cattle on feed as of November 1st at 101.4% of a year ago. Placements in October are pegged at 112.2%. Marketed in October are estimated at 99.6% of a year ago.
  • N/A
Have a great day!!!!
Chelsey White
Emery Branch Manager/Originator || Topflight Grain Coop
593 Emery Rd.
Maroa, Il 61756

This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Topflight Grain Cooperative, Inc. Topflight Grain is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Contact Topflight Grains designated personnel for specific trading advice to meet your trading preferences. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by Topflight Grain Cooperative, Inc.

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