CORN

Corn futures are firm this morning with March corn plotting a sideways course just above the contract’s 100-day moving average located at 3.88. Look for two-sided trade as the market consolidates into the weekend in very light trade volume. Bullish traders will argue that export sales activity will be on the rise in the weeks ahead as Brazil basically runs out of exportable corn and the U.S. now becomes the market of choice. A pullback in the dollar this week overnight is also noted. Trade estimates for this morning’s USDA Weekly Export Sales are 500,000 to 1.20 mil tons.

SOYBEANS

Soybean futures were up 3 cents overnight, again rising to their highest level in several weeks as trade with China increases and, helped by soyoil and 3-year highs in Malaysian palmoil. We’ll look for continued choppy but firming activity as less-than-ideal weather in parts of Brazil begins to show dryness. Argentina received some rain last week but overall remains net dry. Trade estimates for this morning’s USDA Weekly Export Sales are 700,000 to 1.50 mil tons

WHEAT

Wheat futures are 4 to 5 cents higher this morning after pulling out of the Christmas Holiday with a sizable gain. Growing expectations that the January 10 USDA report will likely show a draw down on world inventories is viewed as supportive, as is less-than-ideal Midwest weather heading into January. Trade estimates for this morning’s USDA Weekly Export Sales are 200,000 to 900,000 tons

CATTLE

Cattle futures are called steady to higher while maintaining a bullish tilt into the end of the year. Futures had a nice rebound yesterday on light volume, finishing with solid gains of 60 to 97 points. Good demand is underpinning futures as well as ideas that cash cattle will hold at least steady, if not higher.

HOGS

Hog futures are called mixed. Futures continue to hold a strong premium to the cash index but expectations are that supplies could start to lighten into January. The market continues to get support from ideas that China will be an aggressive buyer of U.S. pork over the near term.

Author

Carol Tillmann