CORN
Corn futures are higher this morning, able to build on Friday’s key upward reversal and put contracts back into their previous sideways trading ranges. May corn advanced a nickel to 3.80-1/2. Dec gained 4 cents to 3.84-3/4. Rebounding crude and equities (both higher this morning) allow for the potential for follow through strength in corn on ideas that the markets had become deeply oversold and undervalued. The recent pullback in the dollar, which is firmer this morning, is a supportive factor for exportable commodities. Volatility can be expected to continue, though as there is still concern that coronavirus headlines will remain a negative force in the markets near term.
SOYBEANS
Soybean futures were up 4 to 5 cents overnight, soyoil firm and meal flat/weak. Beans had a decent week last week despite the world seemingly falling apart. Prices were off to a good start yesterday with solid gains just under double-digits amid another round of stronger soymeal prices. Now, instead of doom and gloom, beans are seeing daylight as talk of a wet spring in the U.S. reminds us of last year, the weaker dollar creates room for better export potential versus competition from Brazil; and, outside markets show signs of a return to a “risk on” attitude.
WHEAT
Wheat futures are called mixed. Futures were up 1 to 2 cents overnight and appear to be more of a follower of corn and soybeans. Winter wheat contracts closed well off their low yesterday, but still negative for Chi. KC finds some solace in that traders are eyeing drier weather in parts of the Plains states and the dollar trading to a 7-week low to begin the week, improving the prospects for U.S. exports.
CATTLE
Cattle futures are called steady to higher on follow through after yesterday’s solid gains, as Jun lead the rally. Sharp gains in the stock market yesterday and expectations that world interest rates may be declining are helping the near term price bounce. Meanwhile, short term-demand for beef is a concern that should warrant some attention as the market tries to maintain a recovery mode.
HOGS
Hog futures are called mixed. Traders seemed comfortable buying cattle and selling hogs, as daily supplies remain ample. A lack of new export business that could create a backlog of hogs in the U.S. is a hindrance to price recovery.
Author
Lisa Heder