Early Market Talk March 9, 2020


If this isn’t the hyperventilating panic, we must be close. Right? Equity markets around the world plunging as much as 7%. Crude and ag markets under significant pressure as well.

At 0600 CK20 off 4 ¾¢ at $3.70 ¼ (vol 59K) and SK20 off 15 ¾¢ (vol 38K) at $8.75 ½. Chi and KC wheat 5 and 10¢ lower.

Dow futures off 5% at 24,534 in early trade. Crude plunging $9.35 at $31.92 with OPEC attempts to cut production Friday falling apart. Russia vetoed OPEC proposal to cut production. In response Saudi Arabia set to increase production and slash prices. Crude set to test the Feb ’16 low at $26.05.

Confirmed coronavirus cases in the US at 511 with 21 deaths. Global cases at 106K with 3,639 deaths according to world health org.

Saw some NH3 being laid down south of DSM over the weekend.

USDA March Supply / Demand report tomorrow at 11:00. Average trade guess for corn ending stocks at 1.888 bln bu and soybeans 426 mln bu. Wheat at 944 mln bu.

Updated with CFTC data, Funds holding a net short 86K corn and 41K soybeans. Both numbers less than trade ideas by a significant margin.

BNSF rail freight continues to run at small discounts. New crop values bid at tariff with asking prices near $350.

CZ and SX both trading at the lowest levels this date in five years.

Nearly everything we look at for price direction clues, thrown out the window………..

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