Corn: 2-4 lower
Beans: 11-15 lower
The commodity markets are down this morning as news of more coronavirus cases have been reported.
As of Friday afternoon, it was reported that the corn funds were net short 61,461 contracts. The corn market closed lower Friday after the USDA’s Outlook Forum projections for the 2020 crop year indicates the corn market will be oversupplied again. They project a 2.637 billion bushel carryout which is a 745 million bushels increase from their February estimate. U.S corn sales have remained strong for the past couple weeks, however, lack of new Chinese purchases has kept a lid on any significant rallies. This morning the corn market is trading lower as the trade has turned their attention to the March planting intentions number and the fact that the Chinese are likely going to use the Coronavirus as an excuse to hold off purchases.
The bean market was reported to be net short 89,763 contracts. The bean market reacted positively to the USDA’s Outlook Forum projections that the 2019/20 carryout would be down to 320 million bushels which would be a 96 million bushel decline. However, the trade then focused on the lack of purchases they have seen from the Chinese. Soybean sales and inspection have been pretty non-existent due to the much cheaper South American crop that is estimated to be 30% harvested which is above the 5-year average of 28%.
This is the last week to sign up for our Averaging contract. It is a great tool to use in your marketing plan! The deadline is Friday at 4:00pm. Get in touch with your local GMA to sign up.