Grains were lower on Friday & sagged anew on Sunday night, falling along with a crash in crude oil & global equity markets.
Grains rebound from early session lows, but still end the week lower as the financial tumult in global markets takes a toll.
Soybeans rally, corn ends fractionally higher & wheat closes mixed as grains avoid meltdowns seen in equities, energy & precious metal markets.
Grains & livestock markets followed plunging global equity markets lower on Monday as traders worried the spread of the COVID-19 disease would destroy economic demand.
Grains were higher on Friday until President Trump tweeted that more MFP aid may be necessary until the trade deals "kick in." The tweet gave traders another reason to be skeptical about demand at the same time that USDA sees a return to normal acreage & yields in 2020. Here is our analysis of Ag Forum, weekly export sales, cattle on feed & CFTC reports that were issued on 2/21/2020.
Soybeans led corn & wheat prices off their lows on Wednesday as reports of Chinese buying interest surfaced.
Wheat led corn higher following the 3-day holiday weekend, but soybeans ended slightly lower as skepticism about Chinese demand amid record South American bean output kept a lid on rallies.
Grains worked lower ahead of the 3-day holiday weekend, disappointed by lack of Chinese sales & worried that USDA's 10-year budget projections are a harbinger of bearish forecasts at their upcoming Ag Forum.
Corn maintained pre-report losses, wheat extended their losses, & beans erased pre-report deficits after USDA released its monthly supply-demand revisions on Tuesday.
Corn & wheat were weaker oni Monday & again on Tuesday morning ahead of the 11 am release of USDA's monthly supply-demand revisions, but soybeans were mixed on Tuesday following a sixth straight higher close to start the week. Traders apparently expect USDA to boost usage forecasts due to the Phase One trade deal.