CORN

Corn futures are under pressure again this morning, forging another round of new contract lows as crude makes new lows. Dec corn fell 2-1/2 cents to 3.60. Nearby May reached a new low of 3.38-1/2 on losses of 5-1/2 cents. This market is suffering a technical breakdown this week and further liquidation is likely. The Lack of favorable news and concerns over ethanol margins have been primary features as far as fundamentals. However, the negative volatility in the stock market where the index futures were down 800 points overnight has all the markets searching for lows. We will get Weekly Ethanol stats mid-day, exports tomorrow.

SOYBEANS

Soybean futures are higher this morning with the trade grappling with yesterday’s attempt to stabilize in a relatively subdued trading range as compared to other recent sessions. Contracts are up 6 to 7 cents this morning on ideas that export activity will likely pick up as soybeans have become a value, and monetary stimulus measures provide some measure of support. Yet with the Brazilian real making new record lows mid-week versus new highs in the dollar, coronavirus concerns and risk-off in commodities bean prices, now in the 8.30 to 8.40 range may yet try and target 8.00 on futures.

WHEAT

Wheat futures were mixed overnight with Chi contracts off a penny and KC up slightly. Prices showed strength yesterday with KC leading yesterday’s gains and that trend continued overnight. A weekly down-tick in crop conditions in TX and KS may help prices hold their new lows for the move throughout the week. They (prices) appear as though they are trying to consolidate but the likeliest trend is still lower, particularly with the dollar on the rise and the Russian ruble at a 3-year low thus making U.S. exports more difficult.

CATTLE

Cattle futures are called firmer after limit higher yesterday in another round of strong gains in product values. Cutouts on yesterday’s morning trade firmed 11.00 in choice and near 10.00 in select with the spread now 9.00 to choice over select. This is a friendly view. Economic concerns could be a factor but today we’ll look for further follow through to the upside unless the cattle complex decides to take its cues from the stock market again.

HOGS

Hog futures are called mixed to higher after yesterday’s strong gains and a technical turnaround. The technical fallout has been abrupt in hogs and may have set a new threshold of support for the near-term. The cash index price, meanwhile continues to hold well just under 60.00. The solid fortunes in pork cutout values would point to stronger short-term demand. Look for choppy trade as the market figures this all out.

Author

Carol Tillmann