Early Market Talk May 6, 2020

Emtheader

One of the quietest night sessions in some time with CN20 a ¼¢ higher at $3.17 ¼ and holding a 1¢ high to low range. SN20 trading 1 ½¢ higher at $8.41 in a 5 ¼¢ range. Volume at 8 and 9K respectively on these two contracts. Chi and KC wheat giving up 5 and 4¢.

Dow futures gaining 210 points at 23,971. Spot crude 87¢ higher at $25.43. US $ showing considerable strength.

Funds credited with buying 4K corn and soybeans yesterday. Net short in corn estimated at 145K. Net long 15K Soybeans.

Bullish divergence on the corn chart developing. All the negative news in the market, Fund short and a recent contract low could work together to produce a short-term bounce in a bear market. Also, not so sure that wasn’t a key reversal on the SN20 chart back on April 21st. Little gun shy after that other chart pattern fiasco.

Daily ethanol production down for the 8th consecutive week. Demand took a solid jump last week and combined the two have total stocks lower than the previous three weeks.

Private source has Brazil corn production at 97 mmt, unchanged from their previous report and still 4 mmt below USDA. Next week we get updated USDA estimates. Their soy production also unchanged at 121 mmt and 3 mmt under current USDA estimate.

Weekly look at soybean crush margin later this morning.

Iowa 4” soil temps in the mid to low 50’s except for a handful of SW counties pushing the 60° mark.

Cold week ahead but, assured by some it will warm up……

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