CORN

Corn futures rebounded 3 cents overnight, putting prices back near yesterday’s intra-session highs. A lack major price movement has corn prices stuck in a sideways to lower pattern as lack of positive news seems to be the main culprit. Export sales the past few weeks have increased, and farmer selling is likely to have slowed. We expect prices to begin finding buying interest from end users. Current bottoming action in beans and soy-oil may spark that type of activity.

SOYBEANS

Soybean futures are higher this morning after avoiding a 10th straight day of lower closes on Monday. Mar beans rallied as much as a dime last night to get to 8.87. The encouraging hook reversal also helped drive Nov beans 8-1/4 higher to 9.24-3/4 overnight. In Brazil, Agrural projects soybean harvest at 9% complete versus 19% the same time last year. However, despite bouncing from oversold conditions, the market remains skittish on continued concerns regarding coronavirus.

WHEAT

Wheat futures were up 6 to 7 cents overnight after finding good support at the technical channel line, as well as a technical retracement. Buyers are taking this as a cue to jump in. Energy prices continue to soften, weighing on the Russian ruble and making Russian wheat more attractive to the world market. The U.S. dollar is back on the upswing too, which from a U.S. export stance, creates some resistance for wheat.

CATTLE.

Cattle futures are called steady to higher. Prices posted an upward reversal yesterday and may be poised to find follow through today. Apr cattle bounced for the third consecutive session off of a horizontal support line which dissects two gaps from earlier in the year. Ideas that short-term supplies are still relatively tight should help attract buying interest today.

HOGS

Hog futures are called mixed as traders digest the deeply oversold condition of the market. Recent pressure has pushed futures below the cash index. Feb remains under pressure, as ample near term inventory suggests futures may have difficulty rallying. Apr hogs picked up 1.12 yesterday and posted a hook reversal off a fresh contract low, signalling that prices could be undervalued and a good long term buy from both speculative interest and end user.

Author

Lisa Heder