CBOT grain call is for a weaker open

CBOT grain calls are for a lower opening. SK is near 8.99. CK is near 3.80. WK is near 5.52. The continued spread of the Coronavirus outside of China continues to offer resistance to equity and commodity markets.  Dow futures open Sunday night down 300+ points while crude oil was $1.25 lower. Washington officials continue to express optimism that China will keep its end of the Phase 1 deal. It’s hoped that US ag purchases will start in March but the Coronavirus outbreak has some in the trade thinking China will delay purchases to later in the year. South American weather is considered bearish with near to above normal rainfall called for across Brazil with below normal rains for Argentina. CFTC estimate Managed Money net long 64,000 contracts of SRW Wheat (+19,000); net short 61,000 Corn (-11,000); net short 89,000 contracts of Soybeans (-3,000); net short 72,000 lots of Soymeal (+4.00), and; net long 39,000 Soyoil (-13,000). The USDA Outlook Forum showed 2020/21 US corn carryout rising. Wheat and soybean carryout are expected to decline.

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