CORN

Corn futures were unchanged overnight and mid-range of the last two-week’s nearly 25 cent trading range between 3.32 and 3.56-3/6 (May). Demand concerns weigh heavily on the corn market with the reduction in ethanol production and pressure in energy prices where crude fell below $20/bbl for the first time in decades to begin the week. Markets will likely be quiet this morning as traders square some positions in anticipation of Today’s USDA Planting Intentions report. The projected acres for the 2020/21 marketing year range from 94 to 95 million acres. Stock index futures, crude and the dollar are all higher this morning.

SOYBEANS

Soybean futures were down a bit overnight, easing 4-1/2 cents in the May contract to 8.77-3/4, and 1-1/2 cents to 8.73 in Nov. Front month soybean futures have stayed consolidation mode.  The soybean market will be watch for any additional headlines regarding Argentina and Brazil and possible logistics issues due to the outbreak of COVID-19, which could bring more potential demand for U.S. soybeans and soybean meal. The USDA Planting Intentions report is targeting next year’s soybean acreage near 84 to 85 million acres for the up coming planting season.

WHEAT

Wheat futures were mostly flat overnight, underpinned by a Russian export quota recommendation, and strength in global wheat demand. A sizable rebound in the dollar is occurring to start the week which is creating some headwinds for the wheat markets as U.S. supplies lose some price advantage over other exporting countries. After consolidating from the recent rally, the USDA Planting Intentions and Grain Stocks numbers today may give the market some short-term direction.

CATTLE

Live cattle futures called steady to lower.  Cattle futures saw selling pressure on Monday with overall weakness in box beef trade and selling pressure in the hog market fueling the selloff.  The futures market is at a big discount to cash markets, and this may make traders hesitant to push prices lower this morning as the market processes the disconnect between futures and cash.

HOGS

Lean hog futures called mixed to lower.  Hog futures saw strong selling pressure, with expanded limit down trade in some contracts on Monday.  Supplies concerns of market hogs after last week’s Quarterly hogs and pigs report weigh heavily on sentiment and traders are aware of the high quantity of fresh meat available to hit the market in the month of April.  Technicals are weak, and charts are breaking down which could bring additional technical and momentum selling to the forefront.

Author

Kelly Rubisch