We kicked off the day with Challenger Job Cuts at 6:30 A.M., Balance of Trade, Export Sales, Exports, Imports, Initial Jobless Claims, Continuing Jobless Claims, Jobless Claims 4-Week Average, Nonfarm Productivity QoQ Final, and Unit Labour Costa QoQ Final at 7:30 A.M., Fed Chair Powell Testimony & EIA Natural Gas Storage at 9:30 A.M., Fed Mester Speech, 4-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate at 11:00 A.M., Consumer credit Change, Used Car Prices MoM & YoY at 2:00 P.M.

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The Bureau of Labor Statistics will release the monthly jobs report on Friday. Ahead of the report we have the State of the Union Address with the one, two, & 3 things on voters mind all rolled into one but not necessarily in order are border, crime and economy. The average trade estimate expects the US economy added 200,000 jobs in February, which would be the lowest in 3-Months. Ahead of the government report, the ADP employment report showed that private employers added 140,000 jobs. This was up 111,000 in January but 40,000 jobs less than expectations. ADP Nonfarm payrollsdata often move in tandem but have diverged since last August. The government data has shown that the economy added 1.49 Mil jobs from August – January while the payroll data has shown just 756,000 jobs actually added.

The South American weather forecast remains consistent with yesterday’s forecast and will be updated again tomorrow. CBOT futures are higher today with corn finally reaching above 434, the 20-day moving average for the first time since mid-December. The rally in wheat is a recovery from recent days lashings as Russian wheat values have stabilized below $198.00. All eyes will be on the results of the GASC wheat tender and Russian/E European wheat pricing. The USDA/WASDE will be out with their monthly Crop report tomorrow, and short covering looks to be the feature today. CBOT open interest gained yesterday with corn leading the pack at 10,243 contracts, followed by soybeans adding 9,833 contracts, and wheat gained 5,127 contracts. Soybean meal was up large at 6,333 contracts and no bets on soybean oil which open interest was down 240 contracts. Lack of net short open interest in soybean oil is the shortages palm oil that has fats & oils rallying at the moment.  The open interest also reflects that managed money has been piling into new net short positions on wheat, soybeans, and soybean meal.

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