Early Market Talk February 11, 2021


Overnight trade sees limited carry over selling after the chief beating, they took yesterday. Funds and spec trade big sellers yesterday after USDA failed to produce the king of carryout reduction some had been expecting. The cancellation of 132,000 MMT of export corn sales did not help attitudes.

At 0600 CH21 off 1 ½¢ at $5.33 with SH21 3 ½¢ higher at $13.57 ½. Respectable vol totals of near 42 and 22K on these two contracts. KC and Chi wheat 4¢ higher.

Dow futures 64 pts higher at 31,392. Crude off 40¢ at $58.48. US $ Index a scratch higher and near short term technical support.

CH21 closed below its 20-day moving average for the first time since December.

Funds credited with selling 40K corn yesterday bringing their net long down to 304K contracts. Soybean sales credited to Funds at 30K for a net long of 155K contracts

Argentina’s 20-day trucker strike is over with unions agreeing to increases in freight-hauling rates.

Weekly ethanol production continues to run well below previous two years this date. Stocks down 2.1% from the previous week. Margins continue in the red with some suggesting they stay that way into the summer driving season.

Today is the last day of the Goldman Roll. CHCK and SHSK both trading a 1 ¼¢ inverse this morning. Overnight spread vol at 11 and 9K respectively on these two spreads.

Export sales later this morning. Trade expecting another big week of corn sales of between 800 – 1,400K tonnes. (last week corn sales a record 7.436 mmt) Bean sales between 300 – 750K tonnes.

Brazilian soybean crop production estimate from CONAB later today.

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