February 26, 2020 Comments per MIDCO
Good morning. Grains and soybeans are little changed this morning after a night of heavy trading volume as March positions are being liquidated ahead of first notice day on Friday. No corn or wheat deliveries are expected on Friday, but some deliveries of soybeans should be expected with estimates of 200 to 600 contracts. Crude oil is lower again this morning, but equity futures are slightly higher after trading more than 500 points lower during the night hours. The Dollar is firmer to begin the week. Coronavirus cases have been reported for the first time in six additional European countries. The U.S. Centers for Disease Control and Prevention said yesterday that Americans should be prepared for the virus to spread in the U.S., saying it’s a question of when, not if. Commodity funds were buyers of wheat and soybeans yesterday. They were even yesterday on their net corn purchases/sales. They are currently estimated to be short 107,000 corn and 101,000 soybean contracts and long 41,000 Chicago wheat contracts. The weekly EIA energy report will be released this morning. Record high ethanol inventories indicate a slow-down in production is needed. Today and tomorrow will be dominated by liquidation of March contracts. Expect a two-sided trade today as we look for fresh news. Have a good Wednesday.