by Steve Freed
Happy US Presidents Day. Early grain calls are steady to higher. SK is near 9.03. CK is near 3.82. WK is near 5.41. US grain futures resume trading tonight. Calls are mixed to higher.
China large stimulus and dropping their lending rate from 3.25 pct top 3.15 pct has rallied Asian stocks market 2-3 pct. EU stocks followed. Malaysian palmoil futures traded higher following the Asian stocks rebound. Black Sea wheat prices though continue to ease on lack of new export demand.
Australia lowered their estimate of their wheat crop to 15.2 mmt from 15.85 previous.
The death toll from the coronavirus outbreak in China reached 1,770 as of the end of Sunday. Across mainland China, the number of confirmed infections on Sunday, bringing the total number to 70,548. Some feel the fact
the number of daily increase in new cases is slowing could be encouraging that the spread of the virus may soon be peaking.
Funds increase their overall grain and oilseed net short last week. Some could see funds reduce some of their net short going into USDA annul Outlook Conference scheduled for later this week. USDA is expected to show
some impact Phase 1 deal could have on US exports. USDA could also estimate higher US 2020 acres.
The South American weather forecast for Brazil has no change as rains continue over the next 6 to 10 days for most of the growing regions. Mato Grosso Brazil soybean harvest is near 45 pct which is now above normal.
The Argentine weather forecast has below normal rains over the next 10 days.
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