CORN

Corn futures are weaker again this morning, but holding yesterday’s new contract low support. Contracts are down 1-1/2 cents as markets, in general continue to implode under the weight of coronavirus news. Japan issued a state of emergency and is telling its residents to refrain from going outside over this weekend. The news continues to rattle outside markets. Crude, which, due to its relationship to ethanol, and thus corn is making fresh lows. The stock indexes, too are making new lows. Demand is a concern. Weekly export sales were decent, but still too lackluster to bring any buyers forward at this time. Outside markets and first-notice-day for Mar futures will likely provide the direction for corn futures going into today’s trade.

SOYBEANS

Soybean futures were down hard overnight along with meal and oil. A nice recovery off of early session lows on Thursday has given way to double digit losses overnight. Nearby Mar beans hit 8.74-1/2 on losses of 11-3/4 cents. The proposed rise in the export tax in Argentina has helped provide support under meal prices in the past couple of trading sessions, carrying over into beans. Rumors that China was looking to step into the U.S. bean market for a small purchase also helped fuel Thursday’s afternoon strength. However, risk-off trade sentiment due to more negative coronavirus headlines is over-riding any beneficial market factors.

WHEAT

Wheat futures were down a nickel overnight, further weakening the technical picture as sellers stay active in the wheat market. Long liquidation is being fueled by charts breaking technical support barriers as well as continuing pressure from outside markets, mainly the crude oil market. Technical weakness may lead to additional long liquidation as traders search for some near-term support.

CATTLE

Cattle futures are called steady to lower. Thursday’s session became extremely volatile as prices started limit down, then rallied to positive territory before softening at the close. This may be an indicator that we’re getting close to a bottoming action, as volatility picks up after this strong of a selloff. Today may see some short-covering and position squaring into the weekend. Retail values and cash values were disappointing this week, which haven’t helped add any buying support.

HOGS

Hog futures are called mixed. Despite solid export sales numbers for the week, Thursday’s price action was extremely disappointing as hog futures look to be poised to challenge the contract lows. With Chinese tariffs being softened on March 2, this could bring some anticipation of Chinese buying into the U.S. pork market, and with hogs in an oversold condition, could bring some short covering.

Author

Carol Tillmann