Overnight grain strength muted with new outside market concerns.

Grain futures pushed higher early last evening, with corn gapping higher on the release of the COT report showing a sharp drop in corn length of 140,000 contracts. This is much larger than expected as the CFTC is catching up on managed money positions. This drop in speculative length, along with funds short a large wheat position, had Chicago wheat rally above seven dollars overnight before early morning weakness hit with concerns of another bank getting in trouble. Outside markets tumbled except metals which pushed to a new March high.

The large Swiss bank Credit Susie seems to be next on the chopping block (EU banking issue), with its majority owner of over 30% the Saudi Kingdom stating they will refrain from injecting new resources. (Why if they can count on a government backstopping a company whose stock is down 97% since 2008?) Amongst this EU bank worry, US treasury lending rates again plunged on safe-haven seeking. This has grains again caught in a risk-off spiral making any recovery attempt a major struggle.

Turkey continues to state that the Black Sea Corridor talks are ongoing in their push to get Russia to agree to a 120-day pact extension instead of the 60-day extension they recommend as of Monday. Russia still needs to file the former complaint to change the auto-renewal.

Today’s Crush report from the NOPA will be released at 11 AM CT. The crush rate is anticipated to come in again near 164-165 Mil Bu with soy stocks at 1.9 Bil pounds. February’s crush rate was 165 Mil Bu with soyoil stocks of 2.06 Bil pounds.

Argentina looks to experience some isolated showers through early next week. There is a chance of rain across Argentina from afternoon thunderstorms with seven-day rainfall accumulations that point 25-1.50” with locally heavier coverage and an estimate of 70% of the crop area receiving rain. The rains can help stabilize a collapsing crop in some areas that are still not mature.

Cattle and feeder cattle futures tumbled yesterday and are anticipated steady lower with outside markets this morning. Strength in the corn market yesterday was a selling issue for feeder cattle. A small number of cattle reported sold in Nebraska yesterday came in at $1.00 lower at $164. With the recent weakness, hedged feed yards may sell bids if they can pick up a couple of dollars on basis. This coming Friday’s Cattle on Feed report has estimates for On Feed at 96%, Placements at 94%, and a February Marketings rate of 96%.