CORN

Corn futures are lower as outside markets continue to implode within the vacuum of global economic concerns tied to COVID19. Dec corn made a new contract low overnight to 3.72-1/4 on losses of 4-3/4 cents and July is back below its moving averages, down 4-1/2 to 3.70. A lack of positive news and negative outside influences such as a new low expected in the stock market where futures were down another 1200 points overnight, and lower energy continue to be a negative influence on corn prices. Trade estimates for this morning’s USDA Weekly Export Sales are 600,000 to 1.20 mil tons.

SOYBEANS

The soybean complex is lower with new lows posted in beans on losses of 10 to 12 cents. Prices tried to rally during the session in recent days, but continue to fail into the close as big South American production is expected to compete with U.S. beans and more talk of China delaying Phase One implementation surfaces. Palm oil has fallen sharply along with weakness in crude after the World Health Organization confirmed that the coronavirus can now be classified as a pandemic. Trade estimates for this morning’s USDA Weekly Export Sales are 400,000 to 800,000 for 2019-20; Zero to 25,000 for 2020-21.

WHEAT

Chicago wheat futures were down more than a dime overnight as the “risk-off” mood carries over to a plethora of markets. KC wheat is down 7 to 8, though basis is strengthening in all the grains at this juncture in time. The technical trend remains negative and a lack of positive news and headwinds created from a rebound in the dollar are growing concerns. Trade estimates for this morning’s USDA Weekly Export Sales are 200,000 to 600,000 tons for 2019-20; 25,000 to 75,000 for 2020-21.

CATTLE

Cattle futures are called steady to lower on follow through after prices slid late in the day yesterday. The technical picture looks more iffy with yesterday’s weak finish, and more COVID19 fears won’t help the speculative demand picture for meats. There is less talk now about a market bottom and more discussion about increased volatility. However, cattle futures are struggling to detach from the equity markets and they have yet to accomplish a separation. Expanded daily trading limits will likely be in play today after deferred live and feeder contracts settled 3.00 and 4.50 lower on Wednesday.

HOGS

Hog futures are called mixed to lower on follow through as weak prices for the meat complex weigh on hogs despite a generally favorable technical picture. For now, the trade is factoring in the impending reality that consumers will avoid social events over the next few months, thus causing meat to back up due to cancellations of orders on the books.

Author

Kelly Rubisch