Corn futures were off a penny overnight. Trade estimates for this morning’s USDA Weekly Export Sales are 600,000 to 1.30 mil tons. Expect more sideways trade until the market finds news to move prices in a singular direction. Both bulls and bears have equal arguments at this time, and the market is moving sideways. While there were reports of China containing the coronavirus outbreak, it is said China will release 2.96 mil tonnes of corn from their state reserves which will dampen prospects of corn and DDG exports over the first half of 2020.
Soybean futures were up 2 overnight. Prices have fallen hard enough to be considered oversold and cheap enough for end user buying to more aggressively pick up as well as farmer selling to slow. Trade estimates for this morning’s USDA Weekly Export Sales are 400,000 to 800,000 tons. Soyoil was up for a while overnight after marking a third sizable gain in a row on Wednesday to extend this week’s rebound and, meal avoided making a new contract low while building a base of support this week. However, the prospects for a very large Brazilian soybean crop continue to be a source of resistance for the complex.
Wheat futures are called mixed after trading down 3 to 4 cents overnight amid a strengthening dollar. Prices recovered yesterday on continued concerns that SRW wheat supplies will remain tight. World supplies will once again be adequate on the February Supply and Demand report next week. . Trade estimates for this morning’s USDA Weekly Export Sales are 200,000 to 700,000 tons.
Cattle futures are called weaker after seeing April cattle fall to the contract’s lowest point since Oct 8 on Wednesday. mixed to lower. Yesterday’s close was the lowest since September. Prices slipped through channel line support connecting the gaps back in August and September in the nearbys as fears of near-term demand weaken buying interest and allow the market to probe lower amid a lack of demand from the beef market.
Hog futures are called mixed. Prices closed much like the day before with Feb finding some advancement as it trades below the cash hog index. Deferred months are slightly lower. Weakness in the pork product market and concerns that China will retreat from making its purchases are keeping the market on the defensive. If contract lows do not hold, look for April hogs to test 59.72.