TFM Sunrise Update 1-28-20


Corn futures were off a penny overnight. The technical picture weakened with Monday’s weak price action, but prices remained within Monday’s ranges overnight. At these levels, U.S. corn is the cheapest in the world and may bring some additional export business which may offer price support.


Soybean futures settled well off their fresh 7-week lows on Monday, but tumbled 7 cents overnight to those previous session lows. The technical picture still looks weak in the bean market with prices again challenging key trend-line support levels as concerns over travel restrictions due to coronavirus weigh on Chinese demand. A further price break from here may bring some additional long liquidation and add money flow into short positions. Soyoil has been a leader in both up and down moves in the complex and made another new low for the move overnight.


Wheat futures were down 4 to 5 cents overnight, but unlike row crops, remain in an uptrend with strength in the dollar compared to global currencies creating headwinds for the market. Prices firming off of technical support levels was encouraging on Monday’s trade, but may be building into more of a sideways, choppy fashion.


Cattle futures are called Steady to lower. With the difficult selling session on Monday, cattle futures would be open to expanded limits on Tuesday’s trade as prices have pushed their lowest levels since early October. A close below the 100-day moving average in Apr could open the door for additional technical selling with support near 120.00 on the Apr chart.


Hog futures are called mixed to lower. The sharp gap lower open and limit finish on Monday expands the daily trading limits in hog futures today. Heavy slaughter runs as well as heavy production weigh heavily on the market, and the impact of coronavirus in China spells short term demand concerns which may make it difficult for prices to rally given its weakened technical picture.


Carol Tillmann

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