The Allendale Wake-Up Call

Markets Ring in 2019

Good Morning from Allendale, Inc. with the early morning commentary for January 2, 2019. We hope everyone had a great New Year's holiday with family and friends!

Grain Markets have an old fashioned 8:30 AM CST open this morning as traders took the New Year's holiday off. The following are headlines from around the newswires:

CBOT wheat ended 2018 up about 18 percent, its biggest annual rise since 2012. Corn also rose in 2018, climbing nearly 7 percent as tightening wheat supply fueled additional demand from livestock feed makers CBOT soybeans , however, recorded a 7 percent yearly decline after a plunge in exports to China, coupled with big harvests in the United States and Brazil. (Reuters)

Russian wheat exports rose sharply to 1.2 million tonnes in the last week of December, but trade is expected to be thin during the Dec. 30-Jan. 8 New Year holiday, the SovEcon agricultural consultancy said. (Reuters)

Weekly export inspections for the week ending December 27th reported wheat exports of 376,281 tonnes, corn 913,797, and soybeans 677,679. Traders had been hoping to see a larger soybean number. As a reminder, daily and weekly sales announcements will not be available during the government shutdown, so inspections data are the only clue to Chinese purchases.

Managed money funds were estimated sellers of 9,000 corn, 1,000 soybeans, 5,500 wheat, and 2,000 soymeal during Monday's trade. They were neutral in soyoil.

India has cut import taxes on crude and refined palm oil from Southeast Asian (ASEAN) countries after a request from suppliers, a government notification said. (Reuters)

The year ahead is sure to bring its challenges and opportunities. Start the new year with a complete fundamental outlook for corn, soybeans, wheat, cattle, and hogs complete with price outlooks and trade strategies. We’ll also feature a a complete year-ahead weather outlook with Drew Lerner of World Weather, Inc. It all takes place just a few short weeks away, January 29 - 31. Get registered here.

U.S. President Trump said on Twitter that he had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well. (Reuters)

Jair Bolsonaro was sworn in as Brazil’s president Tuesday, taking the reins of Latin America’s largest and most populous nation with promises to overhaul myriad aspects of daily life and put an end to business-as-usual governing. (AP)

President Trump has invited congressional leaders to a Wednesday afternoon briefing on the border wall at the White House, according to three congressional sources familiar with the invitation. (Politico)

Power in Congress is about to shift, with Democrats taking the House majority on Thursday. Yet it seems unlikely this will result in an immediate change in the government shutdown dynamic. (The Hill)

North Korean leader Kim Jong Un said on Tuesday he is ready to meet U.S. President Donald Trump again at anytime to achieve their common goal of denuclearizing the Korean Peninsula, but warned he may have to take an alternative path if U.S. sanctions and pressure against the country continued. (Reuters)

The economic calendar heats up tomorrow with ADP, Continuing Claims, Initial Claims, ISM, and Auto Sales. Nonfarm payrolls, and Unemployment Rate will be out Friday.

China on Wednesday reported a new outbreak of African swine fever on a farm with 73,000 pigs in Heilongjiang province, as the highly contagious disease continues its spread through the world's largest hog herd. (Reuters)

Dressed Beef Values were higher with choice up 0.94 and select up 3.14.  CME feeder index was at 144.64.  Pork cut-out values were down .27.