Market Signals Weekly Report
The following are comments and discussion items from the weekly conference call of the Market Signals Team.
Discussion Items :
- MS has no new cash recommendations.
- U.S. equities rallied on hope of better U.S. economic data. U.S. dollar traded lower.
- Key to U.S./World financial markets will be U.S. Q3 and Q4 economic data.
- Virus could be impacting World wheat import demand, Argentina economy.
- July Corn futures remain near 3.19. Lower U.S. ethanol demand offers resistance.
- Some doubt December corn can trade much over 3.40 without a weather problem.
- Some feel higher U.S. 2020/21 corn supply could trade Dec corn below 3.00 by the fall.
- U.S. ethanol grind slowly increasing. Managed funds near record short corn futures.
- July soybean futures are near 8.47. Large unknown is amount U.S. soybeans China buys.
- Some doubt November soybeans can trade over 8.80 and could trade lower into the fall.
- U.S. Midwest weather is favorable for U.S. 2020 corn and soybean crops.
- KC, MN and Chicago wheat futures continue to trade near season lows.
- Recent rains have improved C and NW KS wheat crop. SW KS, CO and OK panhandle crops are lower.
- U.S. farmer remains a reluctant seller of corn, soybean and wheat until more is known about 2020 crops.