CORN

Corn futures are higher this morning as ‘Turnaround Tuesday’ lifts many markets after Monday’s unprecedented failure, particularly in outside markets, weighed on corn. The marketplaces remain unsure how to handle coronavirus, as well as a price war in energies. Stock index futures are up 1000 points, crude up $2.25/bbl and the U.S. and Brazilian currencies are rebounding. The likeliest scenario for corn is a grind lower, but for now, contracts are up 3 to 4 cents and trying to maintain some stature after a test of the late February contract low. We’ll get USDA Monthly Supply/Demand today with little change from the previous month expected.

SOYBEANS

Bean futures were up a dime overnight following a terrible looking technical day yesterday where prices gapped lower on the open and remained down double-digits throughout the session. By some accounts the market is oversold, but with condition concerns minimal in South America, it is a challenge to argue higher bean prices, particularly with the Real making record lows. In addition, hopes that China will stick with the original Phase One deal and buy U.S. soy are fading as coronavirus throws a wrench into that plan. Bean oil is trading in similar fashion this morning after a meltdown to new lows to begin the week.

WHEAT

Wheat futures are mostly firm this morning. Chicago wheat seemed to separate itself from both hard red winter and spring wheat yesterday as traders were buying these contracts based on tight old crop inventory, as well as what could be a limited supply of wheat suitable for harvesting. Expect quiet markets until the 11:00 release of the Supply and Demand report.

CATTLE

Cattle futures are called firmer after plunging again yesterday in response to coronavirus. Futures finished sharply lower, near limit, and this is the third consecutive session where prices have finished at or near the low of the day and near limit lower. Feeders traded limit lower on the close and will likely see a technical bounce at some point.

HOGS

Hog futures are called mixed to higher after losing close to 300 points on most contracts yesterday. Like the cattle market, meats are going out of favor as long coronavirus is a big concern. The logistics of moving big inventories overseas seems to be a stumbling block that the market can’t get beyond. However, we’re seeing some overnight strength in grains and outside markets, so livestock can expect some technical short-covering.

Author

Kelly Rubisch