Morning Comments February 20, 2017
Monday, February 20, 2017, 8:02 AM
Submitted by: Landus Cooperative
Trading is paused until 7 p.m. tonight in observance of President’s Day. After a rare (but very welcome) spring-like February weekend, Monday morning has a weather front pushing through the heart of the Midwest. This system stretch’s from the Canadian border to the Gulf of Mexico. Be sure to enjoy the weather this week – Friday and Saturday look like a return to reality.
As can be expected, news is a bit light this morning. One structural point of interest – with the decline in prices on Friday, corn total open interest only dropped by 465 contracts. It is reasonable to have expected a larger decline (as longs are being short-covered). March options expire this Friday (corn, soybeans, meal, soy oil, and all wheats) and this could add some volatility if we have any significant market-moving news. Following a three-day weekend, volatility can be expected at the open tonight and during trade tomorrow.
Have a good day!