2/26/23 Sunday Market Preview

Grains may be set up to stage a technical bounce at the open but will be vulnerable to a further selloff if support does not develop from the energy markets and outside financials. Traders are still in the process of exiting closing and rolling grain longs ahead of March futures turning into deliverable cash contracts on Tuesday. In the Headlines The soon-to-expire March corn futures were pulled lower by 27 3/4 cents (to $6.50) last week while March Chicago wheat fell 54 1/4 cents ($7.08 1/4). A strong start to the short holiday week helped nearby soybeans hold a gain of 1 3/4 cents ($15.29). Even though the outlook forum estimates from Thursday were new-crop focused, they were one of the bearish catalysts that spooked speculators out of long positions held in the nearby futures contracts. There was also more selling interest than buying interest last week based on the buyers having to exit the March futures before they become deliverable. Positioning around option expiration on Friday and first notice day for March futures this Tuesday led the March/May corn spread to trade almost 84,000 times to contribute to total volume in the March of 126,629 contracts. Markets will stay…