Corn – Mostly following beans overnight, recent 2 month high as first resistance is at 416
↑ Beans double digits higher last night meant corn was bound to follow at least slightly
↓ General resistance is seen around the 415 area with the recent 2 month high being 416
↑ There are a few signs of fund short covering but on a much smaller scale than seen the last 7 weeks
↔There may be some pre buying today of tomorrow’s weekly exports which will be expected nearly as strong as last week’s 2120K
Beans – Overnight traders might be expecting major 8 AM sales, moderate rains in the 1 – 5 day
↑ Two nights ago and even more so last night the overnight traders are actively pre buying what is likely to be expectations for a major 8 AM sales announcement
↔For the record, the largest 8 AM sales in the last month was 316K beans to China and unknown, not a bad number for an 8 AM sale but also not exactly what would be considered very strong
↑ Like corn, some pre buying might also be expected ahead of tomorrow’s weekly export number, many will be expecting large sales like last week’s 2428K
↓ Recent 30 day resistance has been around the 1025 level
Wheat – Following other grain markets, also may be anticipating strong exports tomorrow
↑ Just like corn/beans, wheat traders may pre buying expecting strong exports, last week was 475K
↑ Rains in the 1 – 5 day may be highly beneficial to newly planted HRW wheat but trade may first see it as a slow down in the planting pace
↔Right now HRW planting and exports are the main focus, soon all attention will turn back to exports
Cattle – Traders expecting a strong first cash bid, packers do have the cushion to do so yet this week
↓ Yesterday’s PM BB was choice -0.66 select +0.08 packer BE at 189.27, packer cushion $8.61
↑ Packer profits are still above the $7 estimated break even level and traders are anticipating they will
bid higher cash to start the week, so far have not seen an official cash bid but rumors they will be higher
↓ Boxed beef is still an issue to not be ignored, it has harmed cash trades more than one might think, in
fact the only way packer profits are still over $7 is because cash has fallen $9.86 in the last 8 weeks
↔Last week we were anticipating packer profits to fall under $7 this week because it was expected
cash would trade higher, while NE was +1.40 last week the all areas average was -0.29