CORN

Corn futures were down 2 to 3 cents overnight reflecting a retreat in crude and decent planting progress over the weekend.  Weekly Crop Progress will be out this afternoon, Export Inspections mid-morning.  Selling pressure is likely to remain prevalent in the corn market on demand concerns and the impacts of COVID-19.   ADM closed ethanol plants in Iowa and Nebraska only adding to the struggle in the ethanol industry.  Overall favorable weather and soil conditions has allowed planting of the corn crop to proceed relatively quickly, adding pressure to the potential supply side of the market.  Funds were short 161,000 corn contracts as of Friday’s Commitment of traders report.

SOYBEANS

Soybean futures were firm overnight as improved Chinese export business reported by USDA last Wednesday, Thursday and Friday and talk of China looking for 10 MMT of soybeans to fill reserves provides support.  The Brazilian real dropping to a record low against the dollar has been an issue for the market, but overnight the two currencies reversed their respective courses.  Funds were short 2,800 soybean contracts as of Friday’s Commitment of traders report.

WHEAT

Wheat futures were down a nickel overnight amid adequate global wheat supplies.  Improved moisture forecast for the southern Plains through the beginning of May is another source of pressure for winter wheat contracts.  Trader focus will stay on weather in the U.S., Europe and the Black Sea region.  Improved forecasts for the Black sea region brought long liquidation on Friday and the short-term trend is negative.  Funds were long 24,000 Chicago wheat contracts as of Friday’s Commitment of traders report.

CATTLE

Live cattle futures are called steady to higher.  Friday’s Cattle on Feed report showed placements down 23% from last year and Marketings at 113% of last year.  This should provide buying support to start the week.  Retail carcasses are at record levels and also offer support despite disappointing cash markets in the face of a slow slaughter chain backed up cattle.   Should some of these key issues be solved, June live cattle’s massive discount the cash market would be seen as a major source of price strength for the nearbys.  Funds were long 4,400 cattle contracts as of Friday’s Commitment of traders report.

HOGS

Lean hog futures are called mixed. Processing plant closures reaching near 25% of capacity will keep concerns alive about the handling the large supply of slaughter-ready hogs.  A strong retail market provides support to the market in general.  Technically, stochastics are mid-range, but trending higher which would reinforce a move higher if resistance levels are taken out.  Funds were long 13,000 lean hog contracts as of Friday’s Commitment of traders report, but open interest has fallen to its lowest level in 14 months.

Author

Lisa Heder