Last Week’s Close: May corn futures finished Friday’s session up 1 cent, trading in a range of 3 ¼ cents. For the week, futures were up two cents.
Fundamentals: The market has worked higher in the overnight/early morning trade, thanks to news late last week that China had committed to buying 10 million metric tons of U.S. soybeans. Corn bulls are hopeful that this will be the beginning of good news and not just a Band-Aid on a broken leg. Though the overnight session is positive, we want to see confirmation through volume on the floor open. March futures expire this week, May will be the month of interest going forward.
Last Week’s Close: May soybean futures finished Friday’s session down ½ of a cent, trading in a range of 7 ¼ cents. For the week, futures were up 1 ¾ cents.
Fundamentals: News that China had committed to buying 10 million metric tons of U.S. Soybeans late last week has led to a gap higher on Sunday night. On the surface it looks like a commitment to continue kicking the can (real issues) down the road. President Trump announced that the will not increase tariffs on March 1st as previously expected.
Last Week’s Close: May wheat futures finished Friday’s session down 1 ½ cents, trading in a range of 8 ¾ cents. For the week, futures were down 15 ¾ cents.
Fundamentals: Grains opened up higher on the back of positive trade news but the inability to hold a rally on positive news in the wheat market is not a good sign; perhaps that could change when we get more participation on the floor open. As mentioned in the soybean section above, the commitment from China is a Band-Aid on a broken leg and really only kicks the can down the road.
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