CORN

Corn futures are firmer this morning. After becoming technically beat up this week, corn contracts experienced a kind of a dead cat bounce overnight, gaining 3 cents and possibly steering traders from further long liquidation to the end the week. The technical picture has definitely softened with futures back below their respective moving averages. However, the big picture sideways trend is still in tact with the December lows still holding support.

SOYBEANS

Soybean futures were mixed overnight with a weaker tone after yesterday’s poor showing as well as Wednesday’s nose dive following the U.S. and China agreed to a trade resolution, or Phase 1. March beans are just a penny or two above key support in the form of the contract’s 200-day moving average at 9.21-1/4.

WHEAT

Wheat futures were up 3 in Chicago overnight, 1 in KC as the winter varieties continue to maintain a splendid uptrend. The dollar, which is higher this morning, continues to ebb and flow thus creating headwinds from a value standpoint for exports, but underlying support remains in place with Russia making cuts to its export potential.

CATTLE

Cattle futures are called steady after trading sharply lower yesterday, but closing well off their lows. Prices softened yesterday with steady cash prices somewhat disappointing traders coming in near $124/cwt in the South and steady to weaker in the North. The Winter weather is viewed as supportive.

HOGS

Hog futures are called mixed. Volatility continues with choppy price activity, as futures turned lower yesterday after gains the previous two sessions. More uneven trade is expected as traders exhibit skepticism over China following through on purchasing $40 bil worth of U.S. goods this year and next. This has helped spark the long liquidation we’ve seen this week.

Author

Kelly Rubisch