Selected Commodities Fundamental Rundown
Market Considerations and Analytics
Key Notes
While soymeal futures reached new contract highs, soybean futures saw follow-through buying overnight but continued to trade within Tuesday’s range. Corn posted minimal overnight trading while wheat futures were supported by slight corrective buying. As of 6:30 a.m. CT, soybeans are 4 to 6 cents stronger, winter wheat futures are 5 to 8 cents relatively high, and spring wheat is stable to 2 cents higher. Corn futures are trading marginally to a penny down. While the U.S. dollar index is down and over 200 pips, front-month crude oil futures are trading slightly above flat.
Significant revisions to Covid regulation are announced by China… The largest revisions to China’s zero-Covid policy since the pandemic’s start 3 years ago were made public on Wednesday. Asymptomatic Covid sufferers and those with minor problems, according to China’s national health administration, can stay in quarantine at home. Additionally, China stopped testing citizens entering and leaving the nation. Amid demonstrations against Covid regulations, which were the largest display of public unhappiness since President Xi Jinping took office in 2012, several of the 10 additional measures outlined by the National Health Commission mirrored actions already implemented in various towns and regions recently.
China’s imports of soybeans in November were significantly lower than in the previous year. In November, China bought 7.35 MMT of soybeans, rising 77.5% from October yet down 14.2% from the previous year. Arrivals were slowed down by logistical problems with U.S. soybean cargoes leaving the Gulf and China’s rigorous Covid regulations. China bought 80.53 MMT of soybeans in the first 11 months of 2022, an 8.1% decrease from the same time in 2017.
News about instant need South Korea bought 65,000 MT of non-GMO soybeans from any origin and 65,000 MT of corn that was supposed to come from South Africa or South America. Another 25,000 MT of non-GMO soybeans with alternative origin were also offered for purchase by South Korea. Taiwan purchased 65,000 MT of Brazilian corn and 42,750 MT of American milling wheat. 40,000 MT of feed barley and 70,000 MT of feed wheat are needed by Japan.
