Early Market Talk June 22, 2020

Emtheader

Big weekend rains with more on the way pressuring corn and soybean price overnight. Weekend totals of 3” + amounts in eastern IA. Most other areas picking up a solid 1”. Big part of SW Iowa missing out and in need of some relief.

CN20 ended last week up 1 ½¢ higher and near the high for the week but failed to trade into new high ground with some talking double top on the daily chart. Soybeans 5 ¼ higher last week and did score a new high for the move.

At 0600 CN20 off 2 ¼¢ at $3.30 ¼ with SN20 down 3 ¾¢ at $8.72 ¾. Both showing typical overnight volume for a lead contract of 17 and 10K contracts. KC wheat a scratch lower at $4.27 ½.

Dow futures up 120 points at 25,645 this morning but capped by an uptick in Coronavirus cases. Stocks coming off their 4th out of five weeks of a higher close. Crude trading 25¢ lower at $39.50. US $ Index showing some modest weakness after a strong week.

China banned poultry imports from a Tyson plant in Arkansas that had a positive Covid – 19 tests. Tyson says it not necessary to issue a Corvid free certificate with CDC and WHO stating Covid – 19 is not viable on meat after 72 hours. New phytosanitary concerns from China troubling?

Funds covered 27K more of their net short in corn than suspected. Updated with CFTC data Friday we now have them short 266K contracts. Net long just 1K soybeans.

Export inspections at 10:00 this morning. Improving central US weather and trade concerns with China setting the stage for difficult start to the week.

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