Corn futures shifted into neutral overnight after surging higher for a third consecutive day on Monday. March corn shed 1-1/2 cents last night, however, technicals are looking firmer with dryer weather continuing to develop in Argentina and favorable reaction to trade deals, the market may be poised to continue to move higher.
Soybean futures were choppy overnight, advancing to new highs for the move before settling back. Dry weather in Argentina and technical buying provides underlying support on this rally. Argentina’s tax hike on exports may also shift buying interest to the likes of the U.S. at a time when trade talks between the U.S. and China are making strides. Meanwhile, bean oil continues to lead the complex higher with another round of new high’s posted overnight. Jan beans topped out at 9.24-3/4 overnight and is now above all of the contract’s moving averages.
Wheat futures eased overnight after rallying to a 5-1/2 month high in Chi wheat and a 4-1/2 month in KC yesterday before settling off those intra-day highs. Weather, both domestically and elsewhere in the world is viewed as supportive as well as a softer dollar. A dry forecast for the Plains stretches into the end of the month/year.
Cattle futures are called mixed as nearby contracts make new highs that spur profit-taking. Plus, February live cattle’s premium to the cash index paves the way for choppy, two-sided activity. Prices finished with small losses on futures yesterday after big gains at the end of last week. Steady to higher cuts yesterday should provide underlying support, yet this trend will have to continue to support current futures prices.
Hog futures are called mixed. Good news from trade talks last week provided a boost for prices and into yesterday’s close with gains of 1.00 or more on futures. This would suggest traders were poised to buy on expectations for strong exports since pork is high on China’s buying list and tilt the funds from net short to neutral, or net long hogs.