CORN: Corn futures recovered from Monday’s losses overnight, gaining 2 cents in what’s likely to play out as a ‘turn-around Tuesday’ reversal. The market has waited nearly two months for government data to provide direction and prices fell to their lowest level since Jan 15 as sellers dominated the last two sessions. Regardless, longer term fundamentals look positive for corn.
SOYBEANS: Soybean futures were up 4 cents overnight with optimism brewing over China trade talks this week. It is difficult to ignore bearish technical action, but prices have arguably fallen to oversold territory. With the Jan and Feb crop data out of the way, focus will also shift to planted acreage.
WHEAT: Wheat futures were down a penny overnight after strong calendar spreads and late buying in Monday’s trade helped settle prices near unchanged on the day. The export outlook for U.S. wheat looks strong despite the rising U.S. dollar. With wheat futures near the lows of multi-month trading ranges and acreage low for winter wheat, downside should be limited.
CATTLE: Cattle futures are called two-sided. Fundamental strength and weather has kept prices supported, but cattle supplies are nearing the lowest point of the year at a time when demand slips. Meanwhile, managed money is holding a large ownership position with prices near contract highs.
HOGS: Hog futures are called mixed. Higher closes during yesterday’s session are welcomed and give the appearance that a low may be in. China pork values jumped almost 8% after the Chinese New Year celebration.