Early Market Talk February 3, 2021

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Markets making their lows in the first couple hours of overnight trade. Trending steady from those levels and on sharply reduced volume. Trade appears consolidating ahead of next week’s USDA Supply / Demand report.

At 0600 CH21 off 5¢ at $5.38 with SH21 8¢ lower at $13.46 ¾. Vol on these two contracts 24 and 14K respectively. Of the 24K on CH just over 8K of that was spread trade.

CHCK holing a ½¢ range overnight between a ½ and 1¢ inverse.

Dow futures little changed this morning at 30,585. Crude 36¢ higher at $55.12. US $ Index a scratch firmer. US $ a touch firmer against the Brazilian Real after a big drop yesterday.

Dalian Corn futures off a couple cents overnight,

BNSF freight values through August trading at Tariff and in some spots a discount to tariff.

Ukraine has shipped 75 percent of its 17.5 MMT export quota through 1 February. Exports at the first of the month totaled 13 MMT, down 2.9 MMT from the same period last year.

Bearish divergence showing on the CH21 daily chart which will help create some market anxiety for the tech trader.

March soybeans are trading sideways into the apex of a triangle formation on the daily chart.

Morning weather headlines: Heavier rain to favor northern Brazil over the next week. Long-term outlook shows favorable conditions for Safrina corn. 31-60-day outlook relatively wet in the US Midwest.

Welcome back Tom. Vilsack confirmed as Ag Secretary.

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