CORN
Corn futures are down 2-1/2 cents while maintaining a generally sideways trading pattern. Turbulent outside markets continued overnight with stock index futures down 400+ points and crude oil attempting to back fill the gap left from Monday’s fallout. Corn prices rebounded yesterday and continue to consolidate. Both bulls and bears have arguments, but currently due to coronavirus and other outside influences, it is likely the bears are still in control as the trade awaits Phase One action from China, and weather to play out. Weekly Ethanol Stats are on tap for today, Exports tomorrow.
SOYBEANS
Bean futures are called mixed for today. Prices were firm overnight after trying to rally yesterday finishing in positive territory, but at the low end of the daily trading range, which is the 4th day in a row this has occurred. As the market looks ahead, expectations for big South American production continue to weigh on the market’s ability to rally, in particular with concerns of coronavirus acting as a drag on upward potential.
WHEAT
Wheat futures are were down overnight with Chi off 4 cents, KC down 2. Prices are consolidating at best and the recovery yesterday pushes near term futures right up against overhead resistance. Expect choppy but weaker price activity as yesterday’s USDA world figures once again indicated ample inventory, and volatility in global currencies such as the Ruble and U.S. dollar create an uneven playing field . . . export-wise.
CATTLE
Cattle futures are called steady to higher on follow through after sharp gains yesterday. Prices traded limit higher on multiple occasions during the day, but failed to hang onto these upper levels of daily gains which isn’t necessarily the best signal. Futures did close a gap that was left between Friday’s close and Monday’s opening. This might pave the way for lower prices.
HOGS
Hog futures are called mixed to lower. Prices bounced yesterday, but we really can’t find a whole lot of positive news. The Dollar rebounded and yesterday’s slaughter confirmed numbers are still large with 498,000 hogs slaughtered on Tuesday. This is 20,000 more than a year ago for the same date.
Author
Kelly Rubisch