Early Market Talk March 26, 2020

Emtheader

Valero invoking Force Majeure on grain contracts. Iowa Institute for Cooperatives holding a webinar later this afternoon. Major implications for many in the industry.

Senate passed a $2 trillion coronavirus stimulus package yesterday. It now goes to the House where it’s also expected to pass. President Trump said he will sign. When looking at details, I get a vivid picture of hogs at the trough, squealing and fighting for position. Spending beyond ones means does matter. There will be consequences. Someday.

Dow futures trading 134 points lower at 20,890 this morning. This after back to back gains for the first time in weeks. Crude oil off 72¢ at $23.76. US $ again sharply lower.

CK20 off 3¢ this morning at $3.45 ½. SK20 trading 6¢ lower at $8.75 ½. Both on solid overnight volume of 24 and 19K contracts respectively. KC and Chi wheat off a nickel.

Corn and soybean open interest both lower yesterdays. OI down now in six straight sessions for corn and soybeans.

CKCN spread at 6¢ on the way to 8¢? SXSH a 30¢ inverse two days ago now at 16¢.

March 31st planting report on the horizon. Ave trade guess for corn near at 94.1 million, soybeans at 85.0 and all-wheat 45.0. Ag Forum numbers were 94 million for corn, 85 million for soybeans. Stocks data also will get scrutiny. Have seen some big surprises in this report over the years. Particularly stocks.

Weekly export sales later this morning. As always players interesting to see as well as totals.

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