Morning Comments March 8, 2019

Opening Calls:

Corn 1 to 2 higher

Soybeans steady to down 1

 

U.S. corn sales last week of 970,000 mt (38.2 mil bu) were within market expectations of 700,000 mt to 1.1 mmt, but declined solidly from the previous week’s 48.8 mil bu and were substantially below last year’s same-week sales of 73.1 mil bu. The corn market is trading higher this morning as traders who have been hitting the short side of the market even up a bit ahead of this WASDE report due out later this morning.

 

U.S. soybean sales last week were just 311,000 mt (11.4 mil bu), falling sharply from the previous week’s unexpectedly large 80.7 mil bu (but which were likely still residually large from catch-up sales from the shutdown), were well below market expectations of 600,000 mt to 1.0 mmt and were among the lowest of the 2018/19 marketing year so far. Traders remain cautious about the prospects for the U.S./Chinese trade deal and while there is hope that the 10 mmt of soybean purchases that appears to have been agreed to is a positive, the overall trade negotiations seem to have stalled with the meeting between Chinese President Xi and President Trump that everyone had expected on March 27th is no longer a done deal.

 

The March dollar index is trading 25 points lower this morning at around 97.37. This morning the April crude oil contract is trading around $0.90 lower.

 

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