CORN

Corn futures are finding a decent bounce to end the week, with May up 0.0425 to 3.24, July is up 0.04 to 3.3025 and Dec is up 0.0275 to 3.4375. There is some talk of southern US planting delays due to excess moisture and soil temps in the northern parts of the corn belt are too cold. Still, forecasts are mostly nonthreatening, and not providing much support. Energy prices are pushing lower. Technicals are still oversold and may be some of the reason for buying action today, especially if traders are short covering into the weekend. Funds were thought to have sold about 11,000 contracts of corn yesterday.

SOYBEANS

Soybean markets are beginning to drift lower after holding slight gains overnight. May beans are down 0.0075 to 8.36, July beans are down 0.005 to 8.4525 and Nov beans are down 0.0025 to 8.5475. Demand for soybean meal in China is on the rise as they work to rebuild the hog herd. Crush has been very strong in the US lately, but questions about feed demand, and South American harvest have continued to pressure. July soybeans are drifting to new lows for the move after trading with moderate gains overnight. Stochastics are deeply oversold, though momentum indicators are still pointing lower and a retest of the March lows seems likely. Funds were thought to have sold 5,000 contracts of beans yesterday.

WHEAT

Wheat markets are stabilizing today, with May CHI wheat up 0.0475 to 5.34, May KC wheat is up 0.085 to 4.785 and May KC wheat is up 0.0225 to 5.085. The US missed out on Egypt’s tender yesterday due to elevated shipping costs and the US dollar has been rallying lately as well. A lack of weather concerns in the US, coupled with rain in Russia has limited speculative buying limited. Today’s bounce appears to be a technical correction from the sell-off this week. Stochastics in CHI wheat markets are oversold, and price action quickly took futures below their Bollinger band ranges this week. Moving average support levels have also held today. Funds were thought to have sold about 4,000 contracts of CHI wheat yesterday.

CATTLE

Cattle markets are trading with relatively quiet action today. April lives are down 1.85 to 93.65, June lives are up 0.02 to 86.50 and August lives are up 0.70 to 91.35. May feeders are up 0.55 to 119.02 and August feeders are down 0.37 to 128.25. The bounce in beef values this week is reflective of slower kill this week, and this could incentivize packers to keep feedlots stay as current as possible. Exports have been strong lately, especially as China and Hong Kong begin to reopen. June lives were unable to hold their open above the 20-day moving average resistance level and have since traded in a tight range. Momentum indicators are beginning to flatten out which is helping the market to stabilize.

HOGS

Hog futures are just a bit higher this morning with June up 0.52 to 43.65, July is up 0.42 to 51.50 and August is up 0.30 to 55.72. Pork values have begun to rebound due to reduced slaughter, but traders are still worried about packers’ ability to stay open if workers contract coronavirus. China hog slaughter for Q1 was down 30% from last year, and as their economy begins to reopen, strong imports of US pork should continue. June hogs briefly tested their 10-day moving average resistance levels this morning but have since backed off to the lower third of the day’s range. Technical indicators are still sharply oversold though prices may be trying to carve out a near-term bottom.

Author

Kelly Rubisch