Daily Grain & Cotton Commentary (2.25.20)

Published on: 07:53AM Feb 25, 2020

Corn (May)

Fundamentals: May corn futures made new contract lows yesterday as a global risk-off trade gripped the markets. Coronavirus concerns continue to be the leading catalyst as uncertainty grows. Though tough to quantify at this time, there is no denying it will have an impact on the global consumer. With that said, grain markets seem more isolated than other commodities.

Technicals: The market is firming up in the early morning trade, which is a silver lining, but the bulls will want to see confirmation through volume (participation) when the floor opens. Previous....Click this link to get our FULL report! Or email [email protected]

Soybeans (May)

Fundamentals: Soybeans got hit hard yesterday, trading to their lowest price since May. The spread of coronavirus has given the funds ammunition to add to their growing net short position. This is a very fluid situation and we expect it to keep volatility high(er), weekend risk premium will be taken more seriously which could make Friday’s and Sunday nights more interesting for the foreseeable future.

Technicals: The chart is undoubtedly bearish, but we have a hard time pressing the short side after falling nearly 90 cents to start the year. Four-star support from 880-883 managed to hold, if this gives way, we could see....Click this link to get our FULL report! Or email [email protected]

Chicago Wheat (May)

Technicals: May wheat futures broke lower yesterday, carrying over into overnight/early morning weakness. Our target of the mid-520’s is all but achieved. If you were short, you may consider reducing a portion of your position. We still like....Click this link to get our FULL report! Or email [email protected]

Kansas City Wheat (May)

Technicals: Kansas City wheat futures have retraced the breakout point from December 16th, this will act as support today, 456 ¼-458 ½. If this can hold through today’s session, we could see some relief come into the market. A break and close below and we could see the selling re-accelerate. The next significant support pocket doesn’t come in until....Click this link to get our FULL report! Or email [email protected]

Cotton (May)

Technicals: May cotton got taken to the woodshed yesterday, clearly marking lower lows after posting lower highs last week; a trend that has been developing over the last month. If the bulls cannot reclaim ground above 67.30-67.66, we could see prices continue to bleed lower. The next significant support pocket doesn’t come in until....Click this link to get our FULL report! Or email [email protected]

 

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