CORN

Corn futures were down 2 cents overnight. We view the market staying choppy. Trade estimates for this morning’s USDA Weekly Export Sales are from 600,000 to 1.2 million metric tonnes for the 2019/20 marketing year, and with corn prices at these levels, the U.S. is competitive on the global scale. We’ve seen daily export announcements for corn five days in a row up until yesterday.

SOYBEANS

Soybean futures were down 3-1/2 cents overnight after trying to rally on Wednesday before closing at their lowest price level since December 4. Ongoing South American harvest amid improved weather will limit rallies in the bean market, but prices are holding key technical support. Traders, though are concerned that China hasn’t begun buying U.S. beans even thought the Phase One deal calls for $40 bil worth of agricultural purchases this year. Export sales are expected to between 400,000 to 1 million metric tonnes for the marketing year, and if those numbers are disappointing, bean futures will likely fall further if they break support levels.

WHEAT

Wheat futures were down another 3 cents overnight, threatening the otherwise up-trending technical pattern, particularly with Wednesday’s poorer close opening the door for additional long liquidation. Demand concerns regarding coronavirus are definitely affecting the wheat market in a negative way. Weekly export sales are estimated to run between 300,000 and 700,000 metric tonnes, which could be key to help bring some support back into price.

CATTLE.

Cattle futures are called mixed. While cash trade has stayed relatively undeveloped this week, early bids were disappointing which limited any gains in the market on Wednesday’s trade. Apr contract is holding key support at the 120.00 level and the 200-day moving average, but if prices break this level could bring some additional long liquidation. The development of cash trade, as well as retail values, will be key to holding support into the end of the week.

HOGS

Hog futures are called steady to weaker. Charts look technically weak as prices broke to new contract lows on the front months in Wednesday’s trade. The concern is all about demand, and the impact of coronavirus in China and its potential effects. Weekly export sales will be highly anticipated on Thursday morning to see the product movement or if China has stayed active in the U.S. pork export market.

Author

Carol Tillmann