FROM ALL OF US AT TOTAL FARM MARKETING, HAVE A HAPPY AND PROSPEROUS NEW YEAR!

TUESDAY, DECEMBER 31: The CME has regular trading hours. Total Farm Marketing offices will close at 3:00 CT; there will be no Top Farmer Intelligence report.
WEDNESDAY, JANUARY 1: The CME and Total Farm Marketing offices will be closed.

CORN

Corn futures are currently trading softer in today’s trade as the Mar contract is down 1-1/2 cents to 3.86-3/4, while the May contract is down 1-3/4 cents to 3.93-1/4. The corn market continues to battle with moving averages, today testing the 50-day moving average underneath the Mar contract. Again we see follow-through selling after yesterday’s disappointing close as corn futures tried to push out the start of the session only to end with a lower close on the day. Overall, the corn market continues to stay in the consolidation phase holding near this area for the past 10 trading sessions. The market did turn negative on yesterday’s export inspections numbers which were below expectations at 16 million bushels, and still below the USDA’s pace to meet export totals.

SOYBEANS

Soybean futures are currently trading softer, with front-month Jan contract down 2-3/4 cents to 9.36-3/4, while the Mar contract is down 2-1/4 to 9.50-1/4. The bean market has been choppy on the last trading of the year after a strong push higher in yesterday’s trade in anticipation of the Chinese delegation coming to the U.S. to sign the Phase One deal. We got confirmation that that deal will not be signed until January 15, so that may bring some caution into the soybean market today. In addition, soybean futures have been choppy based on aggressive trade in both meal and oil markets, which has seen a strong selloff in soybean oil prices today and a volatile session in the soybean meal as traders are possibly working soybean oil/meal spreads. Overall, beans have seen the near 70-cent rally mostly off of short covering. South American weather still stays relatively favorable for the development of their crop.

WHEAT

Wheat markets are trading softer in Chi contracts with Chi Mar contract down 1-1/2 to 5.54-1/2, while May is down 1-1/4 to 5.57-3/4. Other wheat classes are mixed today with KC wheat trading slightly softer in front months and Mpls wheat firmer. Wheat has had a strong rally into the end of 2019, but may be pushing toward some seasonal highs as contracts are challenging highs from last June. While a weakening dollar in today’s session, trading to its lowest point since June, is favorable in wheat prices and overall demand has improved, the market may be looking a bit toppy in this window.

CATTLE

Cattle markets are trading mostly lower, with supported strength in the Dec contract up 55 cents to 124.65. Feb cattle are 60 cents lower to 125.80, while Apr cattle are 65 cents lower to 127.02. Today is the last trading day for the Dec contract. Cattle prices are staying in consolidation mode as the market anticipates retail values possibly stabilizing and still is moderate support from a strong cash market. Cash prices are undeveloped so far this week, and will likely take to the end of the week before we see significant trading volume. Asking prices are around 125.00 in the South and 200.00 for dress cattle in the North.

HOGS

Hog markets are trading softer, with the front-month Feb contract down 50 cents to 71.30 and Apr down 37 cents to 78.25. After a strong move higher in the Feb contract, prices are seeing some profit-taking going into the end of the year today. Strong premium of front-month contracts to lean hog index, as well as farm cash values, may make rallies difficult in the short term as this premium is built on the anticipation of Chinese demand for U.S. pork. The Phase One deal was thought to be signed this week, or early next, but will be postponed until January 15, This may be bringing some caution into the market overall in the short term. Retail values and firming cash will still be the key going into 2020, and carcass strength was noted at midday yesterday.

Author

Carol Tillmann