CORN

Corn futures are 5 lower to start the week as outside markets implode under the weight of negative news surrounding COVID19. News that Italy has take measures to contain the spread by locking down more than a quarter of its population continues to fuel global demand and economic, as well as health concerns. Crude, stock index futures and U.S. and Brazilian currencies are all making new lows in unprecedented moves. Other newswires report the Trump administration plans to appeal a federal appeals court decision that delivered a major victory to biofuels producers and farmers who have for years fought the EPA’s expansion of the small-refinery exemptions program. Meanwhile, spring fieldwork will get underway in areas where weather has been conducive, and farmers in northern states have been able to resume harvesting last year’s corn crop.

SOYBEANS

Soybean futures gapped lower overnight and are making new lows on losses of 15 cents.  Prices received good news last week in the form of tariff exemptions for Chinese crushers to begin importing beans from the U.S. It’s now just a matter of time before sales pick up. We’ll get weekly export inspections later this morning. However, in the near-term, the soybean complex is digging a deep hole as spring-time approaches with coronavirus the catalyst selling factor.

WHEAT

Wheat futures are down a dime this morning as technicals point lower. With the Russian ruble making new lows and outside markets driven lower on COVID19 headlines, prices could continue to decline. Nearby May Chi wheat fell to a 5-month low of 5.05-3/4 overnight.

CATTLE

Lower calls are warranted for the meats this morning. Cattle futures had a rough week last week with a poor close. Apr finished the week at new contract lows and closed the week lower for a third week as fears over consumer demand due to the coronavirus continues to affect almost all markets. We think the market may continue weaker, but live cattle futures could be considered a bargain.

HOGS

Hog futures finished last week steady to higher and are reflective of expectations for good demand. Look for a mixed to lower open. All attention will be focused on export sales in the weeks and months ahead, as China will likely begin to more aggressively import meats. For now, though, traders remain spooked over the spread of coronavirus.

Author

Lisa Heder