CORN
Corn futures look weak this morning, with May down 0.04 to 3.075, July is down 0.05 to 3.135 and Dec is down 0.045 to 3.3225. A flash sale of 115,800 tonnes to unknown destinations was announced this morning as buyers target value-level US corn supplies. Energies are down this morning, and US weather has been conducive to plating activities in most areas of the country. July corn futures were unable to hold their 10-day moving average support level at Friday’s close, and prices have continued lower this morning. July traded as low today as 3.1225, and while momentum is still pointing lower, corn futures have not made another test of contract lows since making bullish key reversals last week. Funds were thought to have sold about 3,000 contracts of corn Friday.
SOYBEANS
Soybean futures are down hard this morning, with May down 0.1525 to 8.32, July is down 0.165 to 8.33 and November is down 0.1325 to 8.415. Palm oil futures were under sharp pressure overnight, and this has help to push soybean oil futures down to nearby support. Renewed tensions with China have been a wet rag on bean markets for the past few sessions, and with the US dollar up today and the Brazilian real lower, US beans don’t look attractive to China buyers at the moment. July beans held their 20-day moving average support level at Friday’s close despite a soft session, but prices plunged below the 10 and 20-day moving average support levels this morning. July beans have held 8.30 as strong support lately so it will be interesting to see how soybeans interact with these levels in the week ahead. Funds were thought to have sold about 4,000 soybean contracts on Friday.
WHEAT
Wheat markets are lower this morning, but are holding up quite well despite pressure across the rest of the grains complex. July CHI wheat is down 0.0175 to 5.1475, July KC wheat is down 0.0075 to 4.8225 and July MPLS wheat is down 0.0325 to 5.035. Weather in Europe and the Black Sea regions are improving, and recent rains in Kansas and Nebraska have helped to relieve some dryness concerns as well. There are some dryness concerns in the wheat growing areas of Texas, and cold weather expected in the next 10 days in the Plains is supportive. July CHI wheat made new lows for the move this morning but has since bounced off the lows. Stochastics are oversold, and July CHI wheat is trying to push into positive territory. KC wheat is still range bound, and spring wheat futures are extending recent losses. Funds were thought to have sold about 5,000 contracts of CHI wheat on Friday.
CATTLE
Cattle markets are continuing their upward trend this morning though have fallen well off the day’s highs. June lives are up 0.87 to 88.12, August lives are up 0.70 to 93.25 and Oct lives are up 0.55 to 97.35. May feeders are up 1.05 to 118.90 and August feeders are 0.72 to 128.42. Beef values have continued to rocket higher due to sizable reductions in weekly slaughter. Cash trade improved last week, though it is unclear how the volume of cash trade fared. If more cattle are being procured in the country, it would be a sign that packers are anticipating higher slaughter numbers in the weeks ahead. June live cattle traded as high this morning as 89.72 but have since fallen back to the lower half of the day’s range and just below the upper Bollinger band resistance level. The trend still appears to be higher despite stiff overhead resistance and nearly-overbought stochastics. May feeders are trading in a very quiet range today inside of Friday’s range and above nearby support.
HOGS
Hog markets are showing triple digit gains so far this morning, with June up 2.92 to 65.62, July is up 1.40 to 65.52 and August up 1.50 to 66.17. The cash index is still moving higher, and it appears as though slaughter may begin to improve at some time soon. Huge profit margins are just another incentive for packers to stay open and keep killing pigs. June hogs are trading above their 50-day moving average level for the first time since late January, and a close above would be a major bullish development. However, stochastics are sharply overbought and could provide fuel for a setback soon. June futures now have created two gaps in the past two sessions which could serve as targets on a setback. Still, the trend looks higher until proven otherwise.
Author
Lisa Heder