Morning Comments March 6, 2020

Sillouette Harvest Sunset

Opening calls:

Corn: 2 cents lower

Beans: 5 cents lower

Good morning!

Grains trading lower this morning as the on-going spread of the Coronavirus remains in the headlines and equities are falling sharply with the Dow looking to test last week’s low. It seems unlikely corn or soybeans can trend higher until the equity markets have had a chance to settle down. Looking at other market news, the average trade estimate for next week’s USDA WASDE report has corn ending stocks at 1.895 billion bushels vs 1.892 billion in February. Soybean stocks are pegged at 428 million bushels vs 425 million in February. However, most traders are waiting for the USDA planting intentions report at the end of the month. Globally, China has granted new one-year tariff exemptions for U.S. soybean imports for Chinese crushers, with any crush firm able to apply and buy soybeans during any month during the next 12, starting already in March and April. 

Have a great weekend!