CORN

Corn futures were unchanged overnight and are expected to start the week uneventful as the market will take on a holiday type trade atmosphere with the markets closing at 12:00CT tomorrow and being closed on Wednesday to reopen on Thursday at 8:30 AM CT. Look for corn contracts to maintain their tight, buy firmer trading ranges of last week. We will get Weekly Export Inspection for grains and oilseeds this morning. Other than that, news should be light.

SOYBEANS

Soybean futures were up 2 cents buoyed by a firming undertone again in soyoil and as hopes that continued export sales activity and dry weather in Argentina could provide support. Prices, meanwhile are also subdued by on again, off again doubt that trade with China under a Phase 1 deal will ever actually materialize. Chinese President Xi late last week commented that the U.S. President Trump was interfering in Chinese internal affairs at a time when the exporter was expected to reach upwards of $50 bil in U.S. Ag goods.

WHEAT

Wheat futures were firm overnight with winter and spring varieties up a penny, or two. New news may be lacking this week and prices could drift, particularly with the dollar on the upswing making U.S. export less appealing on the global marketplace.

CATTLE

Cattle futures are called mixed to lower. December’s COF report was bearish with placements 4% over the pre-release guesses. Heavy placements in both October and November mean a healthy supply of fed cattle in late spring. It doesn’t necessarily translate into lower prices but will depend to a large extent on the global demand for red meat. The larger placement number is a reflection of smaller acres in winter grazing and the poor late growth of many of the planted wheat fields. Futures edged lower throughout last week with April live cattle closing lower all five days after strong gains a week ago. We’ll look for sideways to lower on expectations for cash to do likewise as dry weather in the Plains favors good weight gains.

HOGS

Hog futures are called steady. We’ll look for two-sided trade as the market takes on more of a holiday atmosphere. Recent gains in the summer months will likely hold as export sales and expectations are on the rise. Nearby contracts look tired after stalling last week, maybe after becoming slightly overbought, technically. However, the lean index is beginning to inch upward.

Author

Carol Tillmann