CORN

Yesterday’s new contract lows held last night as corn futures traded steady.  May corn futures traded to a 14 year low on Wednesday as poor demand from the ethanol market and a drop in cash prices fuels additional selling pressure.  This morning’s Weekly export sales are expected to remain strong, though, ranging from 600,000 to 1.20 million metric tons for old crop, 150,000 to 350,000 for new crop.

SOYBEANS

Soybean futures ticked higher overnight, but are unchanged as of this morning.  U.S. beans are struggling to compete while priced at a premium to South American soybeans.  Charts look weak technically and are on the brink of attracting late week additional long liquidation.  A record NOPA crush for the month of March did help meal futures post a friendly bounce and firmer close in Wednesday’s trade.  Weekly export sales will be a key to possibly giving the market support.  Expectations for sales are from 300,000 to 600,000 tons for old crop beans; 75,000 to 300,000 for new crop; And, for meal, 100,000 to 250,000 tons for old crop, zero to 25,000 for 2020-21 marketing year supplies.

WHEAT

Wheat futures traded two sided overnight.  Rainfall forecast for the dry Black sea region brought selling pressure mid-week and bruised the charts in Wednesday’s session, making the technical picture look weaker.   May Chi wheat enters the day-session between its 40-day moving average support at 5.38-1/2 and 100-day MA resistance at 5.46-1/4 after slumping to a 3-1/2 week low yesterday as the market shrugs off any potential cold weather damage to the winter wheat crop.  Mpls wheat reached a new monthly low as well.  Trade estimates for this morning’s USDA Weekly Export Sales are 150,000 to 350,000 tons for 2019-20 marketing year wheat, 100,000 to 300,000 tons for the 2020-21 marketing year.

CATTLE

Live cattle futures are called mixed.  A firmer close on Tuesday represents the value available in the cattle market, but plants across the country are in various stages plant closings with the reshuffling of labor schedules a concern for everybody involved.  The cattle offered in the cash market will find few buyers, but firming retail values offer support to futures.

HOGS

Lean hog are futures called mixed after trading an inside-day yesterday near contract lows.  Prices firmed off early session lows with a supportive retail market and value in the overall hog market seen as a potential buying opportunity.  However, futures will reflect concerns over processing plants not being able to run at full capacity and traders will keep an eye on the target re-start of the large plant in Sioux Falls that closed due to Covid-19.

Author

Kelly Rubisch