Early Market Talk May 4, 2020

Emtheader

Rough start to the week in grains as US and China spat over who is to blame for spreading Covid -19. World equity markets under pressure and the VIX (fear Index) up 6.61 at 39.86.

At 0600 CN20 off 5¢ at $3.13 ¼ with SN20 12 ¼¢ lower at $8.37 ¼. Both showing typical overnight volume. Chi and KC wheat 5 ½ and 4 ¼¢ lower.

Dow futures off 272 points at 23,349. Crude $1.28 lower at $18.50. US $ Index showing strong gains.

Crop progress report this afternoon with trade expecting corn planting to push 50% complete. Compares to 27% last week, 21% a year ago and the five-year average for this date of 39%.

Soybean planting expected to be pushing 20% complete. A week ago, soybean planting was reported 8%. Average this date 10%.

Updated with CFTC data we now show managed money funds holding a net short of 142K in corn. Net long 18K soybeans.

Corn deliveries totaled 199 lots overnight. Last trade date assigned was April 28th. No soybean deliveries. Open Interest in CK at 3,3161 and SK with 1,283.

Colder temps this week across the corn belt. Central Iowa to see highs in the upper 50’s lower 60’s. Not expected to hit the 70° mark for 10 days. CZCN hit 28 ¼ carry overnight and best of season level. New storage rates on corn that went into effect last year have full carry calculation at 62¢. The 80% of Full at 50¢.

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