Early Market Talk September 2, 2020


Overnight pressure in part from poor closes the previous two sessions and realization from larger segment of trade that more damage to crops arguably off the table. Crop largely is what it is at this point. We can debate just what IT is. Risk premium leaking from price in to fall.

At 0630 CZ20 off 3¢ at $3.55 with SX20 off 7 ¼¢ $9.47 ½. Volume totals well off recent levels. After sharp gains yesterday KC wheat giving up 5¢.

Dow futures up 171 pts this morning at 28,795. Covid – 19 winner, Zoom. Stock up 41% after better than expected earnings. Added over $37 billion in market cap yesterday. Now bigger than IBM.

Crude trading 24¢ higher at $43.01. US $ showing strong gains this morning after setting a new low for the move yesterday at 91.725.

China purchases of new crop US corn stand at a scratch under 10 mmt or 393 mln bu. US corn export forecast this year 430 mln bu over 19/20. China has secured near 14 mmt of new crop US soybeans for the 20/21 season and a record amount for this date.

Yesterday open interest in corn and soybeans up near 17 and 7K contracts respectively. Two days in a row of higher OI in corn.

No corn deliveries again this morning. Same two lot s of soybeans looking for a home.

IHS Markit (formerly Informa or Sparks for the old timers) yield / production estimates expected later today. USDA a week from Friday.

Corn spreads a scratch tighter this morning with CZCH at 9 ½ and CZCN at 20 ½.

Spot ethanol margins in double digit profitability.

Funds net short 55K corn and long 149K soybeans……

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