Early Market Talk August 27, 2021


The week has seen decent price action but on low volume totals and declining open interest. SX21 trading near 27¢ higher for the week while CZ21 is trading near a dime higher. Volume totals did not top 300K for corn or 200K for beans any day this week.

As noted, OI declined this week in both corn and soybeans. So far OI has been lower every day for both corn and soybeans with the exception one day saw corn OI increase a scratch. Corn OI down near 12K this week with soybean OI off near 10K. Lower trade early this morning makes me suspect another day of declining OI. 

At 0545 CZ21 trading 0ff 4¢ at $5.47 with SX21 9¢ lower at $13.17 1⁄4. Both on typical nite session volume to this point of 14 and 11K contracts. 

Dow futures up 87 points this morning at 35,247. Crude near a buck higher at $68.45. US $ giving up some ground. 

World wheat stocks use ratio running near historic lows and helping support feed grain prices. KCW / C spread at 1.3 this morning. Run a long way from a record setting tight spread of near 90¢ earlier in the year but remains far below historical highs. 

CUCZ and SUSX officially entering the silly stage prior to deliveries. Only hedges left in Sep futures should be those getting priced against the Sep. 

U.S. economy grew at a solid 6.6% pace in the second quarter. All eyes on how Fed Chair Powell talks about the economy in today’s speech at the annual Jackson Hole Economic Policy Symposium. Favorite line from an old movie comes to mind; “All is well, Remain Calm”. 

New crop corn sales ahead of last year’s YTD pace. Soybeans well under the pace of a year ago. Not surprising, both above their respective 5-year average pace. 

In the absence of compelling news, lower seasonal trade................. 

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