Stock Markets Roil in the Overnight

Stock markets roiled again overnight as China’s market fell another 7% before hitting circuit breakers. Crude oil also plummeted to new 15 year lows with front-month January contracts near $32 a barrel. Meanwhile, grains grinded lower with nearby corn hovering around support at $3.50.

大豆收割已经开始在布拉兹il's top two growing states Mato Grosso and Parana, with farmers concerned over irregular rains causing damage in the center-west soy belt. Harvesting is probably less than 1% complete in top growing state Mato Grosso, behind this time last year, said Endrigo Dalcin, president of state growers' association Aprosoja.

Japan's Ministry of Agriculture bought a total of 131,031 MT of food quality wheat from the United States, Canada and Australia in a regular tender that closed late on Thursday. Japan, the world's sixth-biggest wheat importer, keeps a tight grip on imports of the country's second most important staple after rice and buys the majority of the grain for milling via tenders typically issued three times a month.

China clobbered global equity markets yet again, sending U.S. equity futures into freefall. In China, the trading day was over just as it began thanks to a swift selloff. For the second time this week, Chinese equity markets tripped their newly-installed “circuit breaker,” or mechanism used to prevent panic selling, just 30 minutes into the start of trade. The moves led to an accelerated pace of selling across the world as the Chinese yuan slipped further, hitting a five-month low.

WEEKLY EXPORT SALES

ACTUAL EXPECTED

Corn 252.9 400-600

Soybeans 638.7 400-700

Wheat 76.5 200-400

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a dba of Foremost Trading LLC (NFA ID: 0307930)

—Kevin McNew