Market Signals Weekly Report
The following are comments and discussion items from the weekly conference call of the Market Signals Team.
Discussion Items :
- Sell 10% 2020 Chicago July wheat at $5.90.
- Soybean prices traded lower today on concern of the spread of SARS.
- Wheat futures continue to trade higher on talk of lower EU and Russia exports.
- Key to nearby prices could be China buying U.S. Ag goods.
- Some feel the Chinese demand may be meat and vegoil may be less soybeans and corn.
- Some feel direction of U.S. dollar could determine commodity price direction.
- Talk of higher U.S./World 2020 corn and soybean crops could weigh on prices.
- Some feel farmers should short hedge futures and cover near Feb lows and then buy cheap corn and soybean call to hedge against U.S. spring or summer weather rally.
- Farmer then should sell cash corn and soybean on a spring weather rally.
- U.S. SRW farmer beginning to sell new crop wheat on this rally.
- Some look for U.S. 2020 soybean crop near 4.200, demand 4.085 and carryout 0.630 billion bushels.
- Some look for U.S. 2020 corn crop near 15.700, demand 14.500 and carryout 3.300 billion bushels.
- Some look for U.S. 2020 wheat crop near 1.825, demand 2.100 and carryout 0.830 billion bushels.