CORN: Corn futures traded as much as 1-1/2 cents higher overnight after a negative turn in the markets towards the end of last week. Additional long liquidation can be expected if prices fail to hold current trend line support levels underpinned by friendly fundamentals in the form of tighter supply and the current strong demand pace.
SOYBEANS: Soybean futures had a 4 cent trading range overnight, mostly to the upside. Demand concerns will stay in the forefront after last week’s disappointing export sales numbers from January 1. Front month soybean futures are holding support levels, but could be vulnerable to liquidation if prices were to push through. Headline risk will stay very key in bean prices with ongoing negotiations, with the U.S./China trade relations being extended into this week here in the U.S.
WHEAT: Wheat futures were two-sided overnight after making new lows on Friday. Weakness in European wheat values on Monday was noted during the market holiday in the U.S., so we expect sellers to remain active despite acreage being at a 110-year low for all winter wheat. Strength in the U.S. dollar has impacted U.S. competitiveness on the global front, and with carryover projections at 1 billion bushels, demand must improve to support wheat prices.
CATTLE: Cattle markets are called mixed. Late-week retail strength last week stayed supportive on cattle futures as prices have stayed in consolidation mode. Development of cash trade at $125/cwt on Friday afternoon will likely set the tone and direction for early-week trade.
HOGS: Hog markets are called steady to firmer amid improvement in retail values, as well as cash trade, towards the end of last week that helped provide support into front month contracts. Apr futures posted a second daily reversal off of nearby price lows. Fundamentals of large slaughter numbers and availability of hogs will act as a wet blanket over prices, but technicals could be improving which may bring some short covering in a market trading well off of winter highs.