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December 6, 2019 | Global Ag News Headlines

USDA Agency Reports

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Wheat prices overnight are up roughly 1 cent in the SRW Wheat, up 3 in HRW, and up 1 for HRS; Corn is up 1 cent; Soybeans up 6; Soymeal up $1.50, and; Soyoil up 15 points. 

For the week, Winter Wheat prices are down roughly 17 cents for Soft Red Winter, down 13 in the Hard Red Winter, and up 1 for Hard Red Spring; Corn is down 4 cents; Soybeans up 11 cents; Soymeal up $7.00, and; Soyoil up 25 points 

Chinese Ag futures (May) settled up 11 yuan in Soybeans, up 12 in Corn, up 31 in Soymeal, up 32 in Soyoil, and up 48 in Palm Oil. The Malaysian Palm Oil market was down 11 ringgit at 2,733 (basis February) 

Overnight US and China trade negotiators said they were making progress on Phase 1 talks. China announced the will drop tariffs on US soybean and pork imports. China crushers have used up their 10 mmt of duty free import licenses. This could help US soybean export to China. China is expected to import a record amount of meat in 2019/20. There is no word if US will delay increase tariffs on China goods on Dec15. 

Sep-Nov US soybean and corn exports are below the pace to reach US export goals. Some feel USDA could drop US soybean exports 25 mil bu and corn export 50-100 mil bu on the Dec 10 report. 

The South American weather forecast for Brazil in the 6 to 10 day outlook has rains continuing in the north with some increased chances of precip pushing south in the growing regions. The Argentine weather forecast remains dry but there is a front still seen bringing some rainfall to the growing regions of Santa Fe, Entre Rios, and into Corrietntes. 

In deliveries, Soymeal totaled 148 lots; Soyoil 711; Corn 66; HRW Wheat 2; Oats ZERO; SRW Wheat ZERO, and; HRS Wheat 10. 

The player sheet had funds net sellers of 3,000 contracts of SRW Wheat; net sold 4,000 Corn; were net buyers of 9,000 Soybeans; bought 6,000 lots of Soymeal, and; net bought 1,000 Soyoil. We estimate Managed Money net long 6,000 contracts of SRW Wheat; net short 145,000 Corn; net short 44,000 contracts of Soybeans; net short 23,000 lots of Soymeal, and; net long 72,000 Soyoil.  

Preliminary Open Interest saw SRW Wheat futures up roughly 3,700 contracts; HRW Wheat down 225; Corn up 5,800; Soybeans up 13,800 contracts; Soymeal up 6,200 lots, and; Soyoil up 15,600. 

For the week ended November 28th, U.S. All Wheat sales are running 6% ahead of a year ago, shipments up 23% with the USDA forecasting a 2% increase on the year

---By class, HRW wheat sales are up 35%, shipments 60% ahead with a USDA forecast of a 15% increase

---SRW sales 3% behind, shipments 20% ahead with a 22% decline seen

---HRS sales 8% behind, shipments up 7% with a 1% decrease being forecasted 

U.S. Corn sales are running 45% behind a year ago, shipments 57% behind with the USDA forecasting an 10% decline. 

U.S. Soybean sales are running 8% ahead of a year ago, shipments 24% ahead with the USDA forecasting a 2% increase on the year

---Soymeal sales 16% behind on the year, shipments down 3% with a 1% decrease forecasted

---Soyoil sales unchanged on the year, shipments 39% ahead with a 12% decline forecasted

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