Monday February 24, 2020

• Markets are down this morning with further pressure from coronavirus outbreaks outside China (Iran, Italy, and South Korea) and Pres. Trump’s tweet on Friday promising market facilitation payments to continue 
• China bought 1.9 mBu of Milo the week of Feb 13th
• Corn exports last week were strong with beans and wheat both below trade estimates putting beans particularly off pace for USDA targets with corn still behind as well
  • Keep in mind if export targets are not met it will increase the carry-out to use ratio for next years crop as well
• Oil (which our dollar is closely tied to) is tending lower (down 4%) due to global demand concerns
• Managed money accounts further increased their short position with wheat selling off some of their long. This suggest a bias towards lower prices yet corn increased their short by an additional 12.5%
• US-China trade optimism still high with Washington stating they expect “Beijing to live up to its commitments to buy more US products and services under the trade deal”
• Canadian exports have slowed due to the pipeline protest costing the industry an estimated $130 million