CORN: Corn futures continued to firm up overnight, gaining 2-1/2 cents while rising 8 cents off of last Friday’s session lows. The big down-day Friday was met with buying interest on Monday and consolidation yesterday. Expect further consolidation, but a lack of farmers’ selling and uncertainty with weather should provide underlying support. The trade is not only watching U.S./China trade developments, but also President Trump’s threats of closing the border with Mexico. The U.S. averages about 2,300 rail carloads of grain per week to Mexico with estimates of 1.7 bil dollars per day of trade that occurs between the two countries. Weekly Ethanol Stats will be out mid-morning today. Weather-wise, the latest forecast holds rain for IA, MO, NE and WI, as well as the South and Delta into next week.

SOYBEANS: Soybean futures were up 2-1/4 cents overnight. Recent export sales are considered supportive, yet we can’t help but think the bean acre number might be too low. The USDA Foreign Ag Service raised their 2019-20 Chinese imports from 88.0 mil tons to 91.5 mil in light of recent purchases by private Chinese buyers. The recent recovery could run into overhead technical resistance another 5 to 10 cents higher.

WHEAT: Wheat futures traded higher overnight with May Chi wheat up 6 cents, KC up 2-1/2 on follow-through after futures closed up off of their respective session lows on Tuesday. We were impressed with yesterday’s comeback and positive finish in Chi after nearly double digit losses. Good ratings for hard red winter wheat will keep rally potential in check.

CATTLE: Cattle futures are called mixed. Somewhat sluggish packer bids and sharper feeder cattle sharply lowered feeder prices yesterday will likely keep the cattle market mixed to lower. Closes have not been impressive. We move into a delivery month for the spot April contract but few delivery notices are expected given the current price structure.

HOGS: Hog futures are called mixed to higher. Prices had a strong close yesterday with limit higher in May and Jun, which means expanded limits today. Technical traders would argue the recent pullback was merely a correction in what may be a bigger price advance in store for hog futures.

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