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March 9 Grains Commentary: Virginia McGathey

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- Virginia McGathey: I'm Virginia McGathey here on the floor at the CME Group, reporting on the grain market. Today the soybeans were falling hard. It seemed that improved weather in Argentina really was kind of easing the drought worries, and started to push the market lower. Well then it started to act like a snowball rolling downhill and really gained some momentum. We were down double-digits at first, and then down over 20 cents. It seems that there's been some background pressure coming from worries about the trade issues and that China will halt its demand and really leave us saddled with an awful lot of soybeans. And it seems that the USDA report showed that the ending stocks were really a lot higher. That's definitely pushing the market lower. The sentiment is bearish everything on the soybeans, and it kind of had room to really correct itself, and that's where the market really ended up much lower. Although every week it's been Monday through Friday is the entire trade, and then we start again Monday through Friday. So perhaps we'll have a little bit more of a rebound back on Monday, and it'll be interesting to see if that actually happens. Now corn was a little bit easier, and it seems that some of that spillover selling from the soybeans really capped any kind of a rally that came yesterday after that USDA report. But it still is trending higher and so hopefully that next week we'll be able to recover a little bit. And there has been some profit-taking of course. With a rally like that and corn, we expect that some of the traders are going to take a little bit off the table and kind of stop the surge somewhat. And it's the end of the week, and if demand still continues to increase, that should definitely buttress the market and really move it a little bit higher. Wheat was also lower. Lower double-digits, almost 14 cents. Even Kansas City was lower. It seems that technical selling really came in with that report about the U.S. world supplies being so big. It really got the selling going, and again, on that contract, the momentum was building. And so it started to move that even lower. And the fact still remains that it's still dry in the southern plains. So all those factors are still there. That just lends itself to a more volatile market. I expect that same thing to happen in the soybeans as well. And it seems that there has been a little bit of buying fatigue after last week's rally, and the correction coming in looks really strong, But we're going to have a lot more volatility when we're up at these prices. So we're going to watch for a lot more trade to happen, as we're in the full-blown weather market for the next number of weeks for sure. That's all from the floor at the CME Group here in Chicago. I'm Virginia McGathey.

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Duration: 2 minutes and 56 seconds
Country: Andorra
Language: English
License: Dotsub - Standard License
Genre: None
Views: 13
Posted by: cmegroup on Mar 9, 2018

March 9 Grains Commentary: Virginia McGathey

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