Morning Comments May 4, 2020

Grain Cornfield Wlandus Cooperative 2016

Opening Calls:

Corn: 4 to 6 lower 

Beans: 12 to 14 lower 

Markets are lower this morning. The basic scope for the markets will be that while there remains some uncertainty surrounding supply, it’s the demand side that is more clouded with doubt. The dry conditions have sent planting out of a cannon this year and we don’t have any major signs of a widescale weather problem for North America at this point. The demand for livestock feed, exports, and ethanol will be keeping a lid on any rallies for the time being. We were able to find some renewed buying from the Chinese, but President Trump continues to push blame towards the country for the spread of the coronavirus, increasing the trade’s perception of the relationship and tenuous nature of the phase 1 trade deal.