Corn futures were mostly flat with a firm tone overnight after trading two-sided on Wednesday, including new highs for the move. Rain continues to be a highlight on the radar and consequently, we just can’t help but think that there will be abandoned acres. The exception would be if next week’s weather turns significantly better and this price rally encourages farmers to plant at all cost. Weekly Export Sales are pushed back to Friday due to the markets being closed on Monday. For now, expect some end-of-the-month position squaring and active hedging activity to take place in these higher price areas.
Soybean futures were unchanged overnight as the market pauses from recent volatility tied to weather. A worker strike in Argentina that has halted grain and soy exports at ports in Rosario and operations in the Santa Fe province where 80% of the country’s exports are processed, transported and loaded is also noted. Technicals, meanwhile are casting both bullish and negative signals with the trend up, but technically overbought with gaps serving as corrective targets. We’ll look for consolidation with a bias for higher based on adverse weather.
Wheat futures were also unchanged overnight and look to stabilize after posting 30 cent trading ranges on Wednesday. Excessive wet weather in the Plains over the last week that has pushed crop ratings lower, as well as dryness in Russia and Western Europe should keep a supportive posture in the market.
Cattle futures are called mixed to firmer. Prices rallied late into the session on front month Jun with deferred months turning slightly positive. While many analysts are calling for higher prices and box prices are beginning this week sharply higher, a lot will depend of the spot futures contract’s direction. Bottom line, there is not a lot of reason to be negative.
Hog futures are called mixed. Prices made a solid reversal upward yesterday after sharp losses the previous two session. Look for consolidation today after testing and holding key support.