Morning Highlights


Highlights

  • CHS Hedging will be attending the Commodity Classic in San Antonio on February 27-29. For those that will be attending, please stop by booth 2071 to visit with Scott Strand and Kent Beadle. 
  • This Friday is First Notice Day for March futures, with all long positions being reported after the close on Thursday.
  • President Trump stated that if a trade deal between the U.S and India occurs; it will be more towards the end of the year.
  • As of 7:00 AM: Crude oil down 0.02 at 51.42, Dow futures up 141 ticks at 28,109, and the U.S$ index down 13 ticks at 99.347.                          

 Corn

  • The corn market is trading steady to slightly higher this morning as the markets await more information on the severity of the coronavirus.
  • Corn export inspections for the week ending Feb 20th were the largest weekly inspections so far in the 19/20 marketing year, coming in at 912,922 metric tonnes.
  • Corn open interest is down 15,520 contracts, with the March down 37,900 contracts, May up 15,000, Sep up 2900 and Dec up 2700
  • South Korea’s KOCOPIA purchased around 60,000 tonnes of corn expected to be sourced from the U.S.
  • South Korea’s NOFI purchased about 69,000 tonnes of corn, FLC bought about 65,000 tonnes, and KFA  purchased around 54,000 tonnes of corn from optional origins, continuing the buying streak for South Korea after the sell off in Chicago prices yesterday.
  • Spreads: H/K 4 cent carry; K/N 3 ¼ cent carry; N/Z 2 ¼ cent carry .

Outlook: Trading steady to higher today as the market waits for some indication of the severity of the coronavirus.

 Oilseeds

  • The soybean market is trading a few cents higher this morning seeing a small bounce after yesterday’s losses.
  • Exports remain poor and inspections drop off from prior weeks as the world starts to look towards Brazil for soybean supplies.
  • Dryness in Argentina is forecasted to increase significantly over the next 10 days, leading to stress on the growth of their second crop soybeans.
  • South Korea’s NOFI made no purchase in their tender to buy 60,000 tonnes of soymeal sourced from South America, stating that prices were too high.
  • Malaysian palm oil futures fell to a four-month low today due to lower exports and political crisis, the benchmark contract was down 4.13% at 2,438 ringgit per tonne.
  • Spreads: H/K 8 ½ carry, H/N 20 carry, N/X 10 carry

Outlook: Trading slightly higher today as the market recovers some of yesterday’s losses and reassess the coronavirus situation.

 Wheat

  • Wheat markets are mixed this morning with Chicago and KC wheat contracts trading lower and Mpls trading steady to slightly higher. Overall no fundamental news to support the markets and traders remain nervous about coronavirus threats.
  • Tunisia purchased around 125,000 tonnes of milling wheat in their tender, being sourced from optional origins.
  • Five companies are offering in Jordan’s tender for 120,000 tonnes of wheat, no purchase has been made yet.
  • Spreads: Chicago H/K 2 ½ cent inverse; Kansas City H/K 7 cent carry; Minneapolis H/K 13½ cent carry.

Outlook: Trading steady to lower today as the market continues to be pushed by fears of the spreading coronavirus.