Highlights
December basis contracts and long futures positions need to be liquidated or rolled by the close of business on Wednesday, 27 November. Given that December options expire this Friday and December delivery assignments will be issued on the evening of 27th, we recommend you roll basis contracts today or tomorrow to avoid the usual weakness associated with options expiration and first notice day. There are probably a lot of December corn basis contracts. When December basis contracts are rolled, the merchandiser will sell December and buy March. That will reduce the price of the December contract and increase the price of the March contract.
Yesterday morning, the USDA announced the sale of:
261,264 mts of old crop soybeans to Mexico
135,000 mts of old crop soybean meal to the Philippines
30,000 mts of old crop soybean oil to India
The U.S. winter wheat crop is 94% planted, 2% behind the normal pace. It is rated 49% good or excellent, 5% improvement from a week ago and 1% better than last year’s crop for this week.
