Grain Market Morning Comments: March 26, 2020

Grains slightly lower this morning after trading higher most of yesterday before pulling back towards the end of the session. Exports were strong across the board as China bought wheat, corn and soybeans last week. This is helping offset the bad news coming out of the ethanol industry. Yesterday Valero announce a temporary closing of 2 ethanol plants until prices improve. We have a USDA report on Tuesday on prospective plantings and quarterly grains. Weekly unemployment claims for the week set a record at 3.28 million which was higher than estimates but we knew it was going to be huge. The dollar has been breaking but continues to trade at a high price.

Today’s Corn Outlook: Corn settled 1.25 higher but lost 2 cents overnight. Export sales of 1.897 million tonnes was large as China was a huge buyer. Look for them to be in the market again on the next report but they can not offset the ethanol debacle.

May Corn Technicals: The corn market is bearish territory and continues to blow thru technical support. A close under 3.35 ½ will open up 3.18 on the downside. Bulls need to see a close over 3.55.

Today’s Soybean Outlook: Beans settled 5.25 cents lower yesterday and lost another 1.5 overnight. The meal market slipped a little yesterday and pulled soybeans off the new highs of the recent rally. If meal turns back higher it should bolster the soybeans.

May Soybean Technicals: The soybeans are short term bullish and a close above 8.90 will open up a challenge of 9.00 and 9.10. Bears need a close under 8.61. Exports: Weekly numbers: Corn 1.897K, soybeans 905K and wheat 1.106K.

Weather: NW Argy and C&SE Brazil still have some dry spots but are getting relief this week and next.

Dollar Index: The dollar is trading 107 ticks lower this morning at 99.92. Brazilian Real: The Real is trading 1 tick higher at 20.03.


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