Markets are down 4 in corn, and down 6 in bean. Crude oil is up 40 and US Stocks are down 50. A two sided Holiday trade is expected in most markets today and Friday. Market hours are normal today, but close early at 12:00 Central on Friday. Trading interest is going to be diminished today, traders won’t take any risk until Monday of next week, especially in beans with South American weather forecast changes possible, and the potential for Chinese soybean cancelations.
Reuters is reporting that private importers and processors of soybeans in China are looking to cancel out of some of the cargoes of US beans purchased early this year. The importers that did not fix futures during the purchase are looking at negative margins on delivery, and are better off eating the cost of the cancelation. Cargoes can be rolled out to next year if necessary with trading cost. US Gulf basis had dropped from +90 to +60 in the past week. New Chinese business has been absent. The buying started in June, and much of what is on the books had futures coverage at the CME, when prices were low.
Have a Happy Thanksgiving,