MORNING OUTLOOK
New Month. Stocks are higher. Most commodities are higher trying to rebound from Fridays losses. Despite higher short term bond yields there is talk Central Banks may not increase rates. Grains are mixed to higher. SK is up 14 cents and near 14.19. SMK is near 426.2. BOK is near 50.04. CK is up 1 cents and near 5.48. WK is up 4 cents near 6.65. KWK is up 5 cents and near 6.38.
Chinese Ag futures (May) settled up 78 yuan in soybeans, down 11 in Corn, down 51 in Soymeal, up 166 in Soyoil, and up 86 in Palm Oil. Malaysian palm oil prices were up 50 ringgit at 3,792 (basis May) at midsession, a 7 week high, following rival vegoils.
SK gapped higher on dry Argentina forecast. BOK back near 50 cents on higher palmoil. SMK, CK and WK held key support. USDA report March 9. USDA stocks and acreage report March 31. US Midwest 6-10 day forecast is warn with normal rains. SW and south is warm and dry.
Argentina crop areas are facing another ten days of net drying. Weekend weather was dry except for a few locations. Rain potentials are advertised to increase after March 12 in portions of the nation buy confidence is low. Southern Brazil dryness will be eased this week with timely rain for the next ten days. The recent dry weather was very good for advancing soybean maturation and harvest progress as well as the planting of Safrinha corn, but rain coming up could slow farming activity and raise some concern over the speed in which harvesting and planting advance.
On Friday, Managed funds were net sellers of 7,000 SRW Wheat; net sold 4,000 contracts of Corn; sold 3,000 Soybeans; sold 1,000 lots of Soymeal, and; net even in Soyoil. We estimate Managed Money net long 24,000 contracts of SRW Wheat; long 358,000 Corn; net long 165,000 Soybeans; net long 66,000 lots of Soymeal, and; long 119,000 Soyoil.
Preliminary Open Interest saw SRW Wheat futures down roughly 4,600 contracts; HRW Wheat down 1,300; Corn down 17,700; Soybeans down 4,800 contracts; Soymeal down 1,400 lots, and; Soyoil up 130.
Deliveries were 6 Soymeal; ZERO Soyoil; 47 Rice; ZERO Corn; 1,288 HRW Wheat; 121 Oats; ZERO Soybeans; ZERO SRW Wheat, and; 612 HRS Wheat.
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