CORN

Corn futures traded higher overnight, gaining 3-1/2 cents to 3.91 in the nearby Mar contract while approaching the January high which stands at 3.92 for the contract. The market, though, remains in consolidation mode overall. However, some support can be gleaned from delayed soybean harvest in Brazil delaying the planting of the Safrinha crop.

SOYBEANS

Soybean futures were up as much as 6 cents overnight as on-again, off-again buying whipsaws prices since the market took a nose dive following the Phase One deal last week. Concerns regarding China not stepping into the U.S. bean market, and South American weather and harvest on the radar may make it difficult for beans to rally. Yesterday’s close and front month contracts under key support levels opened the door for further downside test of possibly 9.00 in Mar and maybe lower if momentum keeps the market depressed and soy oil doesn’t stop going lower. Mar beans start the day trading near 9.20.

WHEAT

Wheat futures were higher overnight catapulted by Tuesday’s rally to new 14 month highs in Chi. Mar rose as much as 8 cents overnight to a new high for the move to 5.90. Kc, too is up, though not as much. Nearby Mar wheat gained 3-1/2 cents to 5.03-1/2. Strength seen in global wheat prices has helped maintain an impressive wheat rally on the face of what still be viewed as bearish fundamentals and a rather strong U.S. dollar. Wheat futures pushed through last June’s highs in the Chi contracts, wil now be poised to challenge the 6.00 level and that key psychological price point.

CATTLE

Cattle futures are called steady to firmer. Firming beef cutout values last week and prospects for improved cash trade as we move further into the end of the month has kept buyer support in the cattle market. Overall, cattle markets are working in a sideways to choppy action and need confirmation on those fundamental factors to push higher. Cattle numbers seem to be tightening, which may bring some increased competition for cash trade this week.

HOGS

Hog futures are called mixed. The market is anticipating some potential movement of U.S. pork overseas and to China as part of the Phase One deal. The first day of the trading week has the market digesting plentiful slaughter numbers.

Author

Kelly Rubisch