Ag Futures: Markets Desire Bigger Chinese Purchases

From AgWeb:

Dec 14, 2018

Good Morning from Allendale, Inc. amongst the early on morning time commentary for Dec 14, 2018.

Grain Markets are happy to run into Chinese buyers dorsum inwards U.S. markets, only postulate to proceed to run into purchase confirmations for whatever sustained rally. As the calendar week wraps up, the steal of holiday-trade could atomic number 82 to depression book should novel China headlines neglect to materialize.

Weekly Export Sales for the calendar week ending Dec sixth had corn sales of 1,064,000 tonnes, inside the 1,000,000 to 1,500,000 estimate. Soybean sales were reported at 795,000 tonnes, every bit good inside estimates of 700,000 to 1,000,000. Wheat sales were every bit good inside analysts estimates, beingness reported at 754,000. Analysts were expecting 500,000 to 800,000 tonnes. As the study was entirely through the 6th, it did non include the recent daily announcements to Red People's Republic of China as well as Mexico.

Confirmation of novel soybean sales to Red People's Republic of China were announced yesteryear USDA.  Private exporters reported sales of 1,130,000 tonnes of soybeans for delivery to Red People's Republic of China during the 2018/19 marketing year. While this sale is a non bad start, traders bring been talking much bigger numbers, as well as would similar to run into to a greater extent than sales. As a reminder, 1,00,000 tonnes is 37 meg bushels.

The Climate Prediction Center expects El Nino to railroad train this wintertime inwards the Northern Hemisphere amongst a 90% confidence level. They run into a 60% gamble that it lasts through the Spring of 2019.

Argentina's 2018/19 wheat harvest is estimated at 19.0 meg tonnes yesteryear the Buenos Aires Grains Exchange, a slight driblet from their previous gauge of 19.2 meg tonnes. Poor weather condition including frost as well as hail were cited for the drop.

NOPA Crush will live released on Mon at 11:00 AM CST. An average gauge of analysts pegs Nov vanquish at 168.444 meg bushels of soybeans. This would live the largest Nov vanquish ever, as well as the 3rd largest vanquish on record.

Managed coin funds were estimated to live internet sellers of 3,500 corn contracts, 9,000 soybeans, 4,500 soymeal, as well as 2,500 soyoil inwards yesterday's trade. They were idea to live buyers of 6,000 wheat. The weekly Commitments of Traders study volition live released today at 2:30 PM CST....

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