-Chinese press confirms expected Jan 15 trade deal signing
-Most South American growing areas remain favorable
-USDA reports on Friday
It’s an exceptionally quiet news morning as the week of the biggest USDA report day of the year opens. Friday will see the release of the USDA’s Annual Crop Production report, quarterly Grain Stocks report, monthly WASDE report and Winter Wheat Seedings report all at 11:00 AM CT. Our pre-report commentary/analysis will be out later today. The CFTC’s COT data will be released this afternoon having been delayed by the New Year’s holiday.
Middle East tensions remain high with Iran vowing to retaliate for last week’s U.S.-led drone strike killing the country’s top general. Energy futures are higher again this morning, while equity markets are under pressure. Palm oil futures were sharply lower overnight.
ï‚· The Malaysian Palm Oil Board will release its monthly palm oil report on Friday. The average estimate of December Malaysian palm oil production is 1.338 MMT (1.261-1.410 MMT range of ideas), down from 1.538 MMT in November and significantly below year ago Dec production of 1.808 MMT. End December palm oil stocks are estimated at 2.064 MMT (1.939-2.190 MMT range) vs 2.256 MMT in November and 3.215 MMT last year. Malaysian palm oil exports in December are estimated at 1.319 MMT (1.260- 1.400 MMT range) vs 1.401 MMT in November and 1.383 MMT last year.
ï‚· The South China Morning Post reported a delegation led by Vice Premier Lui He will be in Washington Jan 13-15 for the signing of the Phase One trade deal.
ï‚· January soybean meal deliveries remain heavy at 1,357 contracts today with no strong stoppers. Soybean deliveries were 214 contracts (ABN stopped 155), while soybean oil saw 282 contracts put out today.
Weather Rains of .40-1.30â€+ fell across most of the Argentine growing regions late Saturday into Sunday. Rains will finish up today and then things look to be mainly dry through Wednesday, with another front to bring totals of .25-.75†by Thursday. After a few dry days, rains return with .50-1â€+ expected to fall in the northern ½ to 2/3 of Santa Fe, Entre Rios and most of Corrientes early next week. In Brazil, dry weather dominated RGDS, Santa Catarina and MGDS over the weekend, with rains of .35-1†falling across around 75% of the rest of the Brazilian growing regions. Tropical, hit and miss showers and thunderstorms will bring rains of .50-1.5+ to most of the Brazilian growing regions over the coming 5-day period with the balance of rains from Parana south to fall with a front tomorrow and Wednesday. Widespread .50-1.5â€+ amounts are expected in the 6-10 day period.