TFM Sunrise Update 3-13-20


Corn futures are up 3 to 4 cents this morning as the markets attempt to recover from the fallout caused by the spread of coronavirus. Stock index futures, which have served as a compass for price direction in a majority of commodities, are up 850 points after forging a new low last night on follow-through. More disturbing headlines surrounding the pandemic may mean more follow through again today after prices lost ground late into the session yesterday finishing with significant and sharp losses. Other barometric price influencers like the dollar,  Brazilian Real and crude are showing corrective movement this morning, too.


Bean (and soyoil) futures made new contract lows with follow-through weakness in equities overnight, and are now up 5 to 6 cents.  Poor finishes have now been posted in five consecutive sessions while closing in the lower 1/3 of the daily trading ranges. Look for mixed action today as traders look to even some of their positions heading into a weekend of uncertainty…news-wise.


Wheat futures were also mixed overnight and are 2 to 3 higher this morning. We were encouraged by the way wheat bounced back late in the session yesterday. Nonetheless, this market is subject to knee-jerk reactions to outside markets. Whether or not traders reduce short positions by the close could be a different story.


Cattle futures are called higher based on some semblance of price correction in outside markets. Limit down yesterday would suggest another 1.00 to 2.00, at a minimum, lower today if things turn south again, though.


Hog futures are called mixed to firmer after sharp losses yesterday of limit down as futures continue to struggle with massive daily slaughters and uncertain economic conditions.


Kelly Rubisch

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