2/28/2020 7:14:01 AM
- CHS Hedging will be attending the Commodity Classic in San Antonia February 27-29. For those that will be attending, please stop by booth 2071 to visit with Scott Strand and Kent Beadle.
- Chinese agriculture futures fell during today’s session, with some contracts seeing multi-week lows. The weakness in the market continues to stem from the coronavirus, as new cases multiply rapidly.
- The first case of the coronavirus in sub-Saharan Africa has been reported, officials are concerned that the disease will spread widely in Africa and Latin America.
- The CME group announced that they will be increasing the daily trading limits for lean hog futures in April due to the increased volatility caused by Africa Swine Fever.
- As of 7:00 AM: Crude oil down 1.38 at 45.71, Dow futures down 163 ticks at 25,390, and the U.S$ index down 74 at 98.434.
- The corn market continues to trade lower as coronavirus fears control the markets, now looking towards the May contract, prices stayed within a 2 ¾ cent range overnight.
- A trusted industry source sees U.S. 2020 planted corn acres at 96.6 million acres, the most corn acres seen since 2012.
- Pressure on the corn market also comes from the expectation that safrinha planting will be almost complete next week, and BAGE’s increased Argentina corn production estimate.
- Weather in Brazil is expected to dry up, allowing for safrinha corn planting, however, the dry conditions could stress the germination of the corn.
- Open interest for corn is down 16,080 contracts
- Spreads: H/K 3 ½ cent carry; K/N 4 cent carry; N/Z 5 cent carry .
Outlook: Trading lower today as markets continue to be pressured by fears of the coronavirus developing into a pandemic.
- The soybean market is trading lower overnight, continuing to see pressure due to the spreading coronavirus.
- Export demand for beans is decreasing as demand switches over to Brazilian beans, yesterday’s export sales were disappointing at 339,300 tonnes.
- Malaysian palm oil futures saw the largest weekly loss this week in 12 years, with the futures ending 6% lower during todays session.
- BAGE increased their Argentine soybean production estimate by 1.4 mmt to 54.5 mmt due to good weather conditions in the growing season so far.
- Deliveries: Soybean Meal 1,237, Soybean oil 1,107.
- Open interest for soybeans down 18,840 contracts, soymeal down 17,660 contracts, and soyoil down 20,550 contracts.
- Spreads: H/K 6 ½ carry, H/N 16 ¼ carry, N/X 8 ½ carry
Outlook: Trading lower today, continuing to trade off coronavirus headlines.
- Wheat markets are all trading lower this morning, with the Chicago market set to see the biggest monthly drop since last July.
- Pressure on the market stems from coronavirus and a lack of worldwide export business, with the U.S not priced competitively enough to get much business.
- FranceAgriMer estimates that French soft wheat is 64% G/E vs 65% G/E the previous week.
- Philippines buyers purchased about 275,000 tonnes of feed wheat to be sourced from optional origins.
- Deliveries: Mpls 436, Chicago 0, and KC 9
- Spreads: Chicago H/K 4 ¼ cent inverse; Kansas City H/K 7 ¾ cent carry; Minneapolis H/K 13 ¾ cent carry.
Outlook: Trading lower today as the market continues to sell off due to fears of the spreading coronavirus.