Grains in Chicago closed lower today with May Corn down 8, May Soybeans down 16 and May Wheat down 27. General long liquidation in all commodity markets was the feature today.
Corn closed modestly lower following especially wheat down. A mixture of bearishness in the market place expecting new crop corn acres to grow in addition to the fear of growing stocks, potentially in the USDA March 31st report as this report will be a leading indication of feed demand and/or domestic usage (ethanol) possibly slipping further than expected.
Soybeans closed sharply lower as long liquidation was the feature. Risk is inherited on the long side going into a mix of reports coming over the next week. Feb. Crush will be reported tomorrow expectations of 134.5. New crop soybeans are the leader to the downside as an easing supply and demand picture is beginning to unfold for the new crop.
In closing, I do feel that some new crop pricing needs addressed for the risk to reward of selling here is likely better than the alternative. Even if that means just placing a floor under new crop levels using minimum price contracts or any combination there of. Especially as traders are fearing liquidation from Index funds as the close of 1st quarter draws near.
Up Coming News:
USDA Export Sales 7:30a cst
Corn 600-850 MMT
Soybeans 250-550 MMT
Jeff Neisler
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