Corn futures were quiet again last night, easing slightly further ahead of Friday’s USDA report where the agency will make its last estimate of the crop production for the year. As the week wears on, the market will likely reflect more of a position of its belief of which way the report will be biased.
Soybean futures were narrowly mixed overnight with a weak tone as there is not a whole lot of new friendly news elsewhere outside the U.S. Within the U.S. we continue to see strong export sales and inspections. Yet, charts look toppy and have a feel of retreat from overbought levels. Though supportive, look for the market to exhibit some skepticism over the Phase One trade deal until it is actually ratified.
Wheat futures are called mixed and were down 1 to 3 cents overnight. Chi may come under more pressure as spreading between buying KC and selling Chi is likely a feature again today. Drier weather in the Plain states provides underlying support for hard red winter wheat which is traded as a KC contract.
Cattle futures are called steady to higher on expectations for firmer cash this week and follow-through from yesterday’s impressive rebound. The market gained confidence yesterday with solid finishes above nearby resistance.
Hog futures are called mixed. Prices closed quietly yesterday and will look for more consolidation. Friday’s poor finish is a concern, but yesterday’s lack of follow-through selling may suggest prices are poised to recover as traders view the pull-back as a bargain buying opportunity.