Futures are lower this morning as traders are becoming impatient with just hearing about progress in the negotiations between the US and China and want to see a signed deal before they consider changing their position in the markets.
The USDA will be out with their March WASDE report tomorrow morning. Typically this is one of the quietest of the reactions to a report we will see all year, but given the funds have piled into a large and unusual short position heading into the growing season the trades reaction could be telling ahead of the quarterly Stocks and plantings report on March 29th. This is only the second time since 2007 that money managers have held such a large net short position in early March. President Trump has spoken several times about the FED’s interest rate hike and his desire to see rates again retreat. If the dollar could just retreat some it could be a signal to the bulls that we’ve gone far enough and help spark some additional buying.
Have a Safe Day!