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