Grabanski: Markets quiet in short trading week
Crude oil probably bottomed this week at $28 per barrel, and now is trading at about $35 per barrel. It’s time to buy energy futures, sell crude oil puts, and generally buy all your fuel you need for the next two years, as the energy markets likely have bottomed.
For the President’s Day-shortened trading week ending Feb. 18, March Minneapolis wheat gained 7.5 cents, March Chicago gained 4 cents and March Kansas City was up 8 cents.
The ethanol report was fairly steady to positive, while the export sales and export inspections reports were positive. Ethanol stocks continue to grow, which could turn burdensome if crude prices stay low. Texas is unseasonably dry and could face production issues this summer if the low moisture conditions continue.
The soybean harvest in Brazil is ramping up, and the country is expected to see record production at about 100 million metric tons.
This is going to keep the pipeline full for a while. Global stocks are already at an abundance, and demand needs to stay steady to start picking away at these stocks.
The outside markets were supportive. For the week ending Feb. 18, Soybeans were up 7 cents. Soybeans found some strength, to get back to two-week highs.