Morning Commentary

May corn down ½ at $3.7525

May beans down 1 ½ at $9.1225

The DOW is down

USD is stronger

Crude oil down $.55 at $56.01

Good morning,

Corn bulls are trying to hold on, awaiting more specifics regarding Chinese trade and potential weather headlines hampering upcoming U.S. planting. The question is, can bulls hold on long enough for these headlines to come to fruition? Remember, we need new money and new bullish troops to show up to help fight the battle. Bears tend to believe that any bulls wanting to bet on Chinese trade headlines have already joined there bullish ranks and are currently in the fight. While those who are wanting to bet on U.S. weather might be waiting a while longer to join the bullish battle. The short term trend is negative.  A close over 379.25 is friendly while consecutive closes under 370.25 opens the door to renewed selloffs.  There should be sell stops around 367.25 in the day session.  

Soybean traders seem to have paused, awaiting more details and direction regarding Chinese trade negotiations. Most sources are thinking President Trump and Xi will meet in Florida towards the end of March to try and hammer out more details and finalize some specifics. There’s not much in the way of weather headlines in South America and the U.S. crop is still in the bag.  The short term trend is neutral-slightly negative.  Closing over 921.5 is needed to improve the outlook.  Consecutive closes under 909.75 opens the door for renewed selloffs.  There should be sell stops around 902.25 in the day session. 

Natural Gas Trade With China Could Come with the Right Deal: If current negotiations come to fruition, there stands to be a rosy path for natural gas years down the road. Natural gas is one industry that could see China commit to nearly $18 billion worth of the product from U.S. exporter Cheniere Energy Inc. There could be losers in the game if the right deal is struck as major LNG exporting projects are in the pipeline in Canada, while Australia has been counting on its rising LNG exports to China to offset falling coal revenues.


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