Grain Exchange 2-25-20
Morning markets are slightly firmer after a rough Monday to start the week. Coronavirus still seems to be the major headline impacting almost all global markets as cases continue to add up. Italy announced that they have had six deaths due to the virus and 219 cases. This has caused one of their main financial hubs, Milan, to shut down business in many aspects. Markets including energies, grains, and livestock were all down yesterday, and the DOW lost more than 3%. Crude oil futures were down 4% yesterday, which put prices below $52 per barrel. While these markets aren’t favorable to grain prices, this may be a good time to look into booking some of your future fuel usage.
The eastern corn belt will see some wet weather today through Friday, and the 8-14 day forecasts are showing some more wet weather March 2-9. We’re on track to be one of the warmest winters on record, with the average temperature tracking three degrees Celsius warmer than the 20th century average. Brazil is also seeing wet weather with rain fall yesterday and continued precipitation and thunderstorms in the forecast for the next 5 days. This is causing harvest delays, as well as some issues loading at the ports. Argentina also saw widespread rains over the last 24 hours.
We saw big futures volumes today as the March board is set to expire soon. Corn traded 448 thousand contracts while beans traded 293 thousand and wheat traded 209 thousand contracts. While farmer selling slows during these drops in the market, continue to watch input costs and make big-picture plans for the coming crop year. As always, give us a call if we can help!
Have a great day!