CBOT Grains Daily Options Report

Home depot reports earnings tomorrow 

 

U.S. export inspections for the week ending Feb. 19 were led by strong corn movement at 2.005 MMT, up sharply from the prior week, with Japan, Mexico, and South Korea as the top buyers, reflecting broad-based demand. Soybean inspections totaled 670k MT, down from the previous week as seasonal South American competition builds, though China still accounted for over half of shipments at 345k MT. Wheat inspections came in at 535k MT, with the Philippines, Nigeria, and Bangladesh leading destinations, showing steady but not aggressive demand. Overall, corn remains the demand standout; soybeans are seasonally slowing, and wheat continues at a moderate, diversified pace.

 

Protesters remain inside Cargill’s grain export terminal in Santarém, Brazil, after storming the facility last week, escalating tensions around agribusiness activity in the Amazon region. The occupation is tied to opposition from indigenous groups against a proposed public bidding process to dredge the Tapajós River and a decree related to river management privatization. In response to the unrest, Brazil’s Ministry of Ports has suspended the dredging bid, and further negotiations between protest leaders and government authorities are expected. The standoff highlights growing friction between infrastructure efforts aimed at expanding crop export capacity and indigenous and environmental concerns in the region.

Bloomberg article from today reports that President Trump is threatening to impose higher tariffs on countries that attempt to leverage or renegotiate trade deals following a Supreme Court decision that struck down his broad global tariff authority. Trump posted on social media warning that any nation that “plays games” in response to the ruling — particularly those he believes have taken advantage of the U.S. for years — will face tariffs even steeper than those already agreed upon. Notably, the European Union has responded to the uncertainty by freezing ratification of its trade agreement with the U.S., seeking clarity on the administration’s tariff direction. The key takeaway is that while the Supreme Court has limited Trump’s legal flexibility to unilaterally impose sweeping tariffs, his rhetoric signals he intends to use whatever leverage remains as an aggressive negotiating tool — meaning trade policy volatility is likely to persist, with real implications for import costs, supply chains, and international business planning.​​​​​​​​​

 

A new commentary from Fitch Ratings highlights that China’s recent growth remains heavily dependent on government fiscal support and strong net exports rather than a sustained recovery in domestic consumption. While headline GDP figures appear stable, the underlying composition of growth suggests continued structural imbalances, particularly tied to weak household demand and ongoing property sector pressures. The reliance on policy stimulus and trade surpluses raises longer-term sustainability concerns, especially if global demand slows or fiscal support is scaled back.

 

December U.S. manufacturing data delivered a mixed signal for markets. Headline factory orders declined 0.7% month-over-month, in line with expectations, reflecting some cooling in overall demand. However, underlying activity was firmer than the headline suggests, as orders excluding transportation rose 0.4%, slightly above forecasts. Durable goods orders fell 1.4%, but core capital goods shipments — a key indicator of business investment — increased, indicating that corporate spending remains relatively steady. Treasury yields moved modestly lower following the release, consistent with a softer headline print but not evidence of a sharp slowdown in economic momentum.

 

An article from Farms.com reports that egg prices have declined from recent highs, offering some short-term relief to consumers, but warns that broader structural changes are underway in the market. The drop likely reflects improved supply conditions, including recovery in laying hen numbers and easing production pressures, yet the “market shift ahead” suggests longer-term adjustments in production, regulation, or supply dynamics that could reshape pricing trends. While prices are currently softer, the industry may be transitioning into a new phase influenced by cost structures, biosecurity measures, and evolving demand patterns.

 

Corn

Bought 200 July 435 puts paid 11 7/8

Bought 200 July 470 calls paid 13 ¾

Bought 200 may 460 calls 6 ½ to 7

Bought 1000 n 470/540 call spreads paying 9 ¼ covered vs 447 1/4

Sold 2200 July 500 calls @ 7 1/8 down to 7 covered 453

Sold 550 April 455 calls @ 4 1/8 down to 4

Bought 200 April 435/465 call spreads paid 11 3/8 up to 11 ½

Sold 900 July 450 puts @ 18 3/8 covered 453

Bought 150 short dated Aug 500 calls paid 12 ¾

Bought 1000 May 440 calls paid 11 7/8 up to 12

Bought 600 April 428 puts paid 2 5/8 up to 3 3/8

Sold 600 July 445 puts @ 17 ¼ covered 449 ½

Bought 500 may 440/410 put spreads 4 3/4

Sold 175 april 420p/475c strangles 1 7/8 

Sold 1000 april 435/450 call spreads at 6 3/8 covered vs 440 1/4

Sold 500 dec 500 calls 18 1/2

Bought 250 dec 500 calls 19 3/8 

Sold 400 may 465 calls 4 5/8 vs 441

Sold 1000 may 440 calls 12 3/8 

Bought 500 sept 375 puts 2 5/8 

Bought 500 w1 440 calls 9 1/4

Bought 1200 April 430 puts paid 2 ½

Bought 400 April 446 calls paid 7 1/8

Bought  400 April 420 puts paid 1 1/4

Bought 1200 May 420 puts paid 3 7/8 up to 4 1/8

 

On a block

Bought 1000 sept 400p/500c strangles 18 ½ vs 451 1/4

 

Beans

Bought 275 july nov +50 cso calls 21

Bought 100 july nov +150 cso calls 3 5/8 

Bought 900 May 1060 puts paid 4 up to 4 3/8

Bought 1000 may 1170 calls 27 ½ to 30

Bought 500 july 1130 puts vs selling 750 july 1080 puts paying 19 ¾ vs 1167

Bought 1000 april 1100 puts 4 7/8 to 5 1/4

Bought 300 May 1120 puts paid 15 ½ up to 16

Sold 400 may 1200 calls 20 3/8 to 20

Bought 1000 w4 new crop 1120 puts 4 3/8 to 5

Sold 1000 may 1110/1160 call spreads 27 ¾ vs 1155

Overnight 

Sold 1250 may 1150 puts 35

 

 

On a block

Bought 400 Nov/May 1100/1110 put spread Diag, paid 2 3/8 covered 1112 ½ 

 

Meal

Bought 2000 sept 500 calls paying .65 to .70

Bought 150 April/July 310/315 put spread 2x1 paid 1.70 covered 313.50 in the May and 7.50 in the July

Bought 300 July 310/305 put spreads paid 2.40

Sold 500 sept 500 calls .60

Bought 500 may 300 puts paying 4.55

 

Bean Oil

Bought 400 May 53 puts paid .65 up to .655

Sold 250 may 55/61 call spreads 3.340 vs 6029

Bought 1200 may 65 c 1.700 to 1.770

Bought 200 may 63/68 call spreads vs selling the 55 puts .180 db

Bought 1200 april 65 calls 1.200 vs 6024

Bought 300 April 70/77.50 call spread 1x2 paid .19

Sold 500 April 57/64 call spread 1x2 @ 1.90

Bought 500 April 55/65 strangle paid 1.56

Bought 100 May 63/68 call spread v. 55 puts paid .07

Bought 450 April 63 calls paid 1.44 up to 1.455

Bought 1000 May 56 puts paid 1.365 up to 1.39

Bought 600 april 58 puts 1.390 

Sold 500 july 6650 calls 2.140 to 2.130

Sold 500 july 66 calls 2.250

Bought 500 july 6150 calls 3.610 to 3.625

Sold 600 may 58/63 call spreads 2.000 covered vs 59.78

Bought 1000 july 61 calls 3.800 to 3.835

Bought 1200 April 65 calls paid .99 up to 1.02 covered 60.24

Bought 1000 July 61 calls paid 3.795 up to 3.835

Bought 500 July 61.50 calls up to 3.605 up to 3.60

Sold 600 May 58/63 call spread @ 2.00 covered 59.78

 

Wheat

Bought 1200 April 550/530 put spreads paid 4 1/4

Bought 500 may 530 puts paying 5 ¾ to 5 7/8 

Bought 250 w4 575 straddles 16 1/4

Bought 950 may 580/575 ps vs s may 600 calls 14 ¾ cr vs 589 1/2

Sold 300 july 550 puts 18 ½ vs 589 1/2

Bought 950 May 600 calls sold the 580/575 puts spread @ 14 ¾  

Bought 150 April 620 calls paid 6 7/8 up to 7

Sold 350 July 550 puts @ 18 ½ covered 589 ½

Sold 450 April 550 puts @ 7

Sold 550 May 540/500 put spread @ 7 ½

 

 

Hogs

Sold 150 June 110 calls @ 3.875

Bought 700 May 56 puts paid .05

Bought 125 July 78 puts paid .175

Bought 200 April 90 puts paid 1.00 up to 1.025

Bought 150 March 97 calls paid .5750 up to .60

 

 

 

 

Live Cattle

Bought 200 June 230 puts paid 6.40

Sold 200 June 232 puts @ 7.00 down to 6.95

Sold 100 Oct 240 calls @ 6.525 down to 6.50

bought 400 June 180 puts paid .425 up to .450

bought 200 June 232/222 put spread paid 3.00

sold 350 June 232 puts @ 7.00

 

 

Feeder Cattle

Sold 150 March 375/380 call spreads @ .95

Bought April 360 puts paid 10.25 up to 10.40