The grain and oilseed markets off to a weak start today in a low trading volume environment. Even with export sales out of the US, but given the overall weakness trending in US equity/oil after the Fed rate hikes yesterday, you can make the case that funds remain sellers of commodities in an environment with minimal liquidity and buyers. The SnDs might paint a better positive outlook on fundamentals from these levels but it really comes down to what puzzle the actors are solving for – the algorithms and folks trading macros might hold a different view.
Crude (WTI) Oil: 46.24 CAD/USD: 0.739
Hard Red Spring Wheat futures trading Mar 19 @ 5.71. Global values are firming up especially out of the Black sea. US export sales were below expectatins @ 313.6 kmt.
Corn Dec futures trading down 4c @ 3.77 on the Mar 19. Despite the 2.5 mmt US export sales, we are seeing technical selling at these levels in the low volume environment.
Soybeans weak with Jan now trading @ 8.95. US export sales of 2.84 mmt reported this morning but the overall technical selling equally present here.
Canola futures trading lower on Jan @ $478.70/MT with the weakness in oilseeds. Market structure still supportive despite the minimal interest on exports thus far.
Have a great day
The Cargill Network