December 18th, 2019 Commentary by Ashton

Good morning! The market seems to be taking a breather from the recent rally we have been seeing early this week. Phase 1 optimism slows without details of commodities and quantities involved.

How can China get to $40 billion purchases of US ag products?  Possible options:
-Buy for reserves
-Force Hong Kong purchases into Chinese ports to count against the number before going to Hong Kong.  Currently, Hong Kong is not counted as China.
-Donate purchases to other nations

January report looms on the 10th which should bring estimates of reductions for wheat crops and possible reductions for corn and beans estimates. 

Not much else out there as far as fresh headlines go. Have a great and safe day- stay warm!

CH first support at 385 ¼, 378 ½. Resistance at 390 ½, then 392 ¼, the 400.
SF support at 919, then 912 ½.  Resistance at 940, then 960.     

Spreads:
CH/CK carry into 6 ½ cents.
CH/CN carry at 11 ¾ cents.
SF/SH at 11 ½ cent carry. 
SF/SN narrowed to 37 ¾ cents. 

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