Morning Highlights


 

Highlights

  • President Trump speaks to the House of Representatives this evening. Traders waiting to see if Trump goes into policy specifics.
  • First Notice Day for March grain and oilseed contracts is today.
  • Today is the last trading day for February live cattle futures.
  • Friday is the last trading day for March live cattle options.

Corn

  • There were no corn deliveries announced.
  • Another large drop in corn open interest today, down over 64,000 contracts. That is a decrease of over 100,000 contracts so far this week.
  • Spreads: H/K 7.25¢ carry, K/N 7¢ carry and N/Z 12.75¢ carry.

 Outlook: Choppy sideways trade on lack of fresh news.

Oilseeds

  • South America is celebrating Carnival. Brazil and Argentina not expected to be very active until Wednesday.
  • Deliveries for the soy complex were 500 contracts of soybeans, 1059 contracts of soyoil, and 249 contracts of soymeal.
  • Soybean open interest took another hit, down over 21,000 contracts. So far, we are down almost 40,000 contracts in open interest for the week.
  • Spreads: H/K 11.25¢ carry, K/N 8.5¢ carry and N/X 26.75¢ inverse.

Outlook: Higher as we look for a little bit of a “Turnaround Tuesday.”

Wheat

  • Egypt’s GASC has tendered to buy soft and/or milling wheat for delivery April 1st to 10th. They have increased their moisture allowance to 13.5% from 13%.
  • UkrAgroConsult estimates that 95.4% of Ukrainian wheat has emerged. 81.7% of the wheat is in good/satisfactory condition.
  • There were deliveries of 958 contracts of Chicago wheat and 145 contracts of Kansas City wheat. No Minneapolis deliveries.
  • February USDA good/excellent crop conditions for US winter wheat are as follows: Kansas 43%, Texas 34%, Montana 51%, Oklahoma 43%, and Colorado 40%.
  • Spreads: Mpls H/K 11.5¢ carry, Kansas City H/K 12.5¢ carry and Chicago H/K 19¢ carry.

Outlook: Higher as we rebound from yesterday’s selloff.