Corn – Funds buy 19K, light new tariff concerns, resistance still expected near 500
↑ Funds bought 19K, now long 312K or 73% of record, still room to buy but % of record is getting high
↓ The US has placed some tariffs on Columbia, there are now some concerns the US may do the same with Mexico and that could slow exports, Columbia has since agreed to Trump’s demands however
↓ Resistance will be expected at/near 500, last week’s high was 494 ½
↔ Funds appeared to be buyers every day last week except Friday, we will see if they return after 8:30
↑ Last week’s exports (for both corn/beans) were quite strong, providing underlying light support
Beans – Funds buy 5K, ARG saw rains over the weekend, moderate rains expected to continue
↓ Southern ARG finally got the rains yesterday that have been in the forecast for almost 10 days, some pressure being seen from those rains actually falling and a forecast for moderate rains going forward
↑ Funds bought 5K and remain a much slower buyer of beans as compared to corn
↓ Next upcoming chart resistance is the 200 day MA which crosses today at 1074 ¾
↓ Starting the 2nd half of this week China will be on holiday, this doesn’t mean their buying of beans will stop entirely but most in trade will at least expect it to slow
Wheat – Funds buy 3K, follower of other markets overnight, poor exports on Friday
↔ Funds bought 3K but such a small amount doesn’t do much to offset 92K shorts
↓ With corn/beans lower last night it was likely that wheat was going to follow
↓ Exports on Friday were poor at 215K, no more cold threats in the 10 day forecast
Cattle – Placements 96.7%, ave cash trade expected +$5 to +$6, BB still setting back
↔ Friday’s PM BB was choice -3.04 select -0.92 packer BE at 204.54, packer cushion $3.44
↑ Trade likely to start higher with Placements at 96.7% when 100% was expected
↑ Follow through support also expected as most looking for a +$5 to +$6 ave cash trade report today
↓ BB continues its slide, now at a level that can make a true effect on this week’s cash trade
↓ The combination of BB lower last week while cash traded higher caused packer losses to match the all time extreme with a couple of trades even making new all time loss records
↔ We don’t know how much loss packers are willing to take but being at all time record levels must be something we at least watch closely
↔ The feeder index was choppy last week but for the most part it was sideways