CORN

Corn futures are lower this morning affected by abrupt weakness in the stock index futures that look to be testing recent lows. The dollar and crude made new lows overnight. Meanwhile, the Brazilian real is steady after making a record low this week. U.S. farmer selling is active in some areas as basis levels continue to firm. May corn was down 2-1/2 last night and looks to be tracking the contract’s 20-day moving average at 3.80-3/4, about par with new crop Dec futures.

SOYBEANS

Soybean futures were down 3 to 4 cents overnight after reversing sharply lower in Thursday’s trade amid risk-off sentiment tied to equities and global uncertainty. Argentina prices turned lower on fears if China buys U.S. they will buy less from Argentina. Again, futures took it on the chin yesterday, yet with a lower dollar, we expect prices will consolidate or move higher. After a volatile and interesting week of trading, May beans, at 8.93-1/4 is up a penny from Monday’s opening range. Meal is firm this morning, and soy oil is also about even with the start of the week while mirroring the move in beans.

WHEAT

Wheat futures are called mixed to lower as a risk-off attitude influences the market place. Yesterday’s export sales figure was neutral, and with technicals looking soft, look for steady to lower as global production forecasts come in. Prices are flat to 2 lower this morning, except for the deliverable nearby Mar KC which has spiked overnight amid a rash of weakness in the greenback.

CATTLE

Cattle futures are called mixed to lower after a poor technical showing yesterday and generally lower cash. The elephant in the room continues to be the spread of coronavirus, and for beef, its impact on restaurant demand in the U.S. Some cash trade developed in the south at $113/cwt this week. Bids of $113 in the north were passed. Box prices were higher this week and slaughter numbers are expected to once again top last year by large numbers of fed cattle including additional tonnage from heavier carcasses. Prices this year are running $10 under last year.

HOGS

Hog futures are called mixed to lower on a lack of positive news or export developments. China remains the biggest importer of U.S. pork so far this year. However, traders remain leery of the cadence of headline news regarding coronavirus. The hog market did mark a week long recovering pattern that continues to paint a picture of technical bottoming.

Author

Lisa Heder