CORN

Corn futures are lower on follow through from last week. The lack of positive news and confirmation from the USDA outlook forum on Friday that acreage and yield is expected to increase, as well as production, carryout and stocks to usage sent prices 3 to 4 lower overnight, thus breaking a month’s long sideways trading range in the front months. Nearby Mar corn hit a new low for the year at 3.72-1/2 and is now targeting the Dec 11 low of 3.71. Dec corn made a second consecutive contract low overnight at 3.82-1/4. Weekly Export Inspections will be out mid-morning. However, for now, most markets are on the defensive, crude and the Dow are down hard and the dollar is up sharply after retreating on Friday.

SOYBEANS

Soybean futures traded a dime lower overnight as positive news eludes the market and allows prices to drift lower. The dollar/real spread continues to be a problem (new lows in the real overnight) and news that coronavirus is now a major problem in South Korea adds concern about trade with the Asian block. Mar beans failed to stay above the contract’s downward sloping 20-day moving average overnight that has been holding support on a closing basis since Feb 13. The contract, now at 8.82 has more room to fall with major support coming in at 8.68-3/4, the low from Feb 3. Nov beans dropped to a 14 month low of 9.08-3/4.

WHEAT

Wheat futures were down 8 to 9 cents overnight. Look for choppy price activity, as the market tries to find direction this week. Thoughts of tightening supplies of exportable wheat could provide support, but a sharply higher dollar in recent weeks and coronavirus continue to act as a hammer on upward price potential.

CATTLE

Cattle futures are called steady to lower. Supplies of red meat in storage and available in the weeks ahead seem to be heavy enough to keep futures steady to lower. Friday’s Cattle on Feed report was termed neutral to friendly with on feed at 102% and marketings at 101%. However, placements were slightly supportive at 99% versus a pre-report estimate of 101.5%.

HOGS

Hog futures are called weaker while taking cues from the rest of the marketplace amid a generally negative bias. Prices had a good turn last week, finishing a few dollars higher on the week. Resistance for the April contract remains the low from August of 68.45. Growing expectations that China is paving the way for significant imports may eventually provide underlying support. Their announcement to lower tariffs last week was likely too late to impact exports.

Author

Lisa Heder