CORN

Corn markets look soft yet again today, unable to bounce back from yesterday’s weakness so far. May is up 0.005 to 3.1975, July is unchanged at 3.2675 and Dec is down 0.0075 to 3.42. China corn futures are rallying to their highest levels since 2015 due to better demand from feed mills, but a very bearish EIA report is keeping energy prices on the defensive. Crude oil futures settled below 20.00 yesterday for the first time since 2002, and ethanol production has been dismal. The US sold 906,600 tonnes of corn for the week ending April 9, down 51% from last week and down36% from the previous 4-week average. July futures have traded in a quiet inside session so far after matching yesterday’s lows. Stochastics are oversold but corn futures appear to be respecting the lower Bollinger band as support. Funds were thought to have bought about 12,000 contracts of corn.

SOYBEANS

Soybean futures are extending their downtrends today, with May down 0.025 to 8.395, July down 0.035 to 8.4825 and Nov down 0.0375 to 8.56. Some of the supply shortages in China are easing due to shipments arriving from South America. NOPA’s crush report yesterday showed crush in March well above expectations and at a new record. The US sold 244,700 tonnes of beans for the week ending April 9. This was down 53% from last week and down 68% from the previous 4-week average at a new marketing year low. July beans are oversold according to stochastics, but momentum is still pointing lower. Funds were thought to have bought about 1,000 contacts yesterday.

WHEAT

Wheat markets are down again this morning with May CHI down 0.04 to 5.3625, May KC wheat is down 0.0175 to 4.7775 and May MPLS wheat is down 0.0375 to 5.1025. A lack of weather issues in the US and the looming reality of record world inventories are still pressuring wheat prices. Some of the dry areas in Russia have seen rain lately and the US dollar as rallied sharply as well. The US sold 178,300 tonnes of wheat for the week ending April 9, down 31% from last week and down 49% for the previous 4-week average. Winter wheat futures are trading inside of yesterday’s range so far though are just off today’s lows. Spring wheat prices are extending the recent downtrend to new lows for the move.

CATTLE

Cattle markets are sharply higher this morning, with April lives up 2.27 to 97.00, June lives are up 2.57 to 87.50 and August lives are up 2.00 to 91.47. May feeders are up 3.42 to 119.12 and August lives are up 2.27 to 128.87. Rallying beef prices are keeping packers incentivized to keep plants running if at all possible, and this has helped to stabilize expectations for slaughter counts moving forward. Cash trade has been reported this week at 94.00-95.00, down from 105 last week. The US sold 20,200 tonnes of beef for the week ending April 9, up 28% from last week and 16% from the previous 4-week average. June lives are testing their 20-day moving average resistance level and a close above would be the first since March 24. Feeder markets have pushed through their 20-day moving average resistance level.

HOGS

Hog markets are moderately lower this morning, with June down 0.72 to 43.90 and July down 0.42 to 51.30. Hog traders do not seem as confident as cattle traders that packing plants will stay open in the near term. Slaughter is running about 255,000 head behind last week so far. Animals have not yet started to back up in the country, and pork values have remained choppy. The US sold 45,700 tonnes of pork for the week ending April 9, down 18% from last week but up 9% from the previous 4-week average. June hogs have stayed within a very quiet trading range so far today and prices may continue to consolidate. Most technical indicators are still very oversold.

Author

Kelly Rubisch