Morning 12-8

Top news:

  • UK inoculated the first two patients, both >80 years old with Covid vaccine
  • Stimulus talks going nowhere same old song and dance
  • Today is deadline for states to certify their electors for the electoral college, after today little chance of overturning the election outcome (BBG)
  • Small business optimism index slips from 104 the previous two months
  • Congress to do what it does best kick the can down the road and sign a one-week Continuing resolution spending bill, giving Congress to Dec 18th to craft a new spending bill.

 A touch of Sour Sentiment across markets so far today Stocks down treasuries up a few ticks Dollar small bid gold little changed  oil lower and Nat gas sideways. 2 of the 3 last trading days, down days have seen contract highs in volume. open interest has peaked so looks like Long liquidation in Jan Contract. Auction schedule this week shows $118 B of paper led by 3 years today 10s tomorrow and 30s on Thursday so maybe this keeps a lid on futures pricing, today is the last day to trade Bunds. Thursday ECB meeting will they Disappoint and not provide the stimulus the market is pricing in? fed meets next Week.

 Soybeans down about 40 ticks still waiting for the  Long liquidation day  ,Thursday is  the release of the Monthly WASDE report maybe that will be catalyst Hogs down for 4 consecutive days  Beef price drop accelerates…Wholesale beef prices dropped $4.22 for Choice and $8.03 for Select on Monday, accelerating the recent drop in prices. Pro Farmer

Economic calendar light today but we do see CPI and PPI later this week which will get markets attention.


  • Japanese PM Suga: New economic stimulus package will total JPY 73.6T; will include JPY 40T in fiscal measures   ITC markets
  • Wapo Sources: Pfizer has told US admin officials it can’t provide substantial additional vaccine doses to the US until late Jun/Jul ’21 as other countries have already bought most of its supply
  • Canadian PM Trudeau: Could see approval of Pfizer vaccine this week
  • -@mkraju: Bipartisan group had wanted to unveil $908b bill text today, but some significant sticking points remain — namely lawsuit protections for businesses and workers that Republicans are demanding and aid to state and local governments that Democrats have been seeking, sources say
  • EZ Dec ZEW Eco Sentiment: 54.4 vs 32.8 prev    good news!  ITC markets
  • -GER Dec ZEW Eco Sentiment: 55.0 vs 45.5 cons

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