CORN

Corn futures are mixed to lower this morning, with all but the nearby May unable to break through the 10-day moving average resistance level. May is up 0.02 to 3.1275, July is up 0.0025 to 3.1575 and Dec is down 0.0125 to 3.3275. Traders remain anxious over renewed tensions between China and the US, but China reportedly purchased nearly 110,000 tonnes of corn overnight. US corn plantings came in at 51% complete yesterday vs 48% expected. Energy prices are finding a solid bounce this morning, and the nearby June crude oil contract is trading above its 20-day moving average level for the first time since April 14. July corn futures are trading just off the highs of the day but have yet to punch through the 10-day moving average resistance level. July is also close to breaking above the downtrend channel resistance level. Funds were thought to have sold about 9,000 contracts of corn yesterday.

SOYBEANS

Soybean futures are up very slightly this morning and have stayed within a tight range so far. May beans are up 0.01 to 8.35, July is up 0.01 to 8.375 and Nov is unchanged at 8.4575. More strength in the US dollar is keeping pressure on the bean market, and palm oil futures collapsed 5% yesterday to their lowest level in nine months. US soybean plantings were seen at 23% complete vs the average market guess at 21%.  China purchased 378,000 tonnes of US beans overnight despite elevated tensions between the two countries. July beans made a disappointing close yesterday below their 10 and 20-day moving average level, and have not been able to trade back above the 10-day so far this morning. Momentum indicators are pointing sideways to lower, though it appears as though traders are reluctant to take soybeans much lower than the lows from mid-March or late April. Funds were thought to have sold about 8,000 contracts of soybeans yesterday.

WHEAT

Wheat are mixed to mostly lower this morning, with July CHI wheat down 0.02 to 5.1775, July KC wheat is down 0.0625 to 4.8075 and July MPLS wheat is up 0.0175 to 5.10. Previously dry areas in Ukraine, western Europe and central Russia have received beneficial rains lately, and this has helped to alleviate concerns regarding elevated export pace and potentially lower production. India is expecting a record crop this year and there are private sources looking for India’s production to come in nearly 10% above last year’s crop. US winter wheat conditions were reported yesterday at 55% G/Ex vs expectations for 53%. July CHI wheat is trading just off the highs of the day but is still within yesterday’s range. KC wheat tested and held its 50-day moving average support level for the seventh session in a row and spring wheat futures are finding a relatively shallow bounce. Funds were thought to have bought about 2,000 contracts of CHI wheat yesterday.

CATTLE

Cattle markets are moderately lower this morning after running into technical resistance levels. June lives are down 0.80 to 87.27 and August lives are down 0.50 to 92.55. May feeders are down 0.27 to 118.80 and August feeders are down 1.12 to 127.85. Early week cash trade was relatively disappointing at 95.00-96.00, though late week trade usually trends higher. Beef prices have continued to surge to new record highs. This could stifle retail demand as grocers limit beef purchase quantities, but should also provide additional incentive for meat processors to keep plants killing animals. June live cattle only traded a few ticks above the opening trades and quickly moved lower, back within the Bollinger Band range. Stochastics are still not overbought, but technical resistance has been formidable for the past few sessions. May feeders tested its 10 and 20-day moving average support levels but have rallied toward the highs of the day.

HOGS

Hog markets are moderately lower, with the front month contracts starting to consolidated near recent highs while deferred month contracts correct from the recent rally. June hogs are down 0.85 to 64.60, July is down 1.95 to 63.47 and August is down 2.65 to 63.20. Sharply reduced hog slaughter lately has helped pork values skyrocket, but the cash Index trending higher may suggest elevated demand for slaughter supplies soon. The Smithfield plant in South Dakota reopened yesterday with a limited capacity. June hogs are trading back within their Bollinger band range this morning after closing above yesterday afternoon. Prices are still sharply overbought according to stochastics, but June is holding the 50-day moving average support level. July futures are trading with consolidation action and August hogs may retest their 10-day moving average support level.

Author

Lisa Heder