Corn – March returned to fair value but lacks news to move much above that level of 480
↔ March recovered from being oversold reaching back to 480 but lacks fresh 8 AM sales or other
significant news to lift it back into slightly overbought territory near 490
↑ While priced under 480 all that March needs for support is to see fund traders on the sidelines
↓ Spill over pressure seen last night from both wheat and beans, as corn lacks news right now spillover
influence could be a small scale short-term guide for this market
↔ Unless there is a significant change in news, we should continue to see support under 480 and
resistance over 480 with moves likely limited to 10 cents on either side
Beans – ARG maps look mostly the same but rains were added to the BRA maps days 1 - 10
↓ Light rains were added on the BRA maps days 1 to 10 compared to what was seen yesterday
↔ Similar to corn we are seeing March beans stay close to fair value of 1300 with the difference for
beans being a slight bullish bias due to concerns about SA whether
↓ If 8 AM sales are not seen trade may begin to expect total bean exports is slow again although it
would take a significant and lasting slowdown to suggest a price much under 1300
↔ Funds have liquidated enough positions to consider themselves flat in beans, we will see now if they
feel the need to go short as they are in corn and wheat
Wheat – Not much news to go with yesterday’s bounce suggesting it may have been fund related
↓ Easing back overnight with wheat lacking fresh news to continue yesterday’s support
↔ Yesterday appeared to be a sign of fund short covering as they are still short 65K wheat
↔ March CHI moved above the recent range but will be a breakout higher unless above 649 1/2
Cattle – Trade quickly shrugged off Friday’s COF report and instead focused on BB and weather
↔ Yesterday’s PM BB was choice +0.38 select +0.04 packer BE at 176.05, packer cushion $5.33
↓ Trade quickly turned to focus back to BB and the weather event from Monday, some of that whether
premium buying may be taken back off today as typically weather related buying lasts only 1 or 2 days
↑ BB continues a slow grind higher and continues as the #1 guide for price direction
↔ Packer profits at $5.33 are not large enough to immediately assume a higher cash trade today but is
still strong enough to at least start with the assumption of a steady cash trade
↔ Only NE posted its part of the showlist at +15K, other areas did not report yesterday