Corn – Lower overnight but a slow grind higher recovers as trade expects lower acres
↓ Overnight is correcting slightly from yesterday's bounce likely led by the wheat
↑ While recent trade has been slow and choppy it does have a slight bullish bias to it as trade will be
expecting fewer acres at the end of the month (our updated estimate on this number soon)
↔ Both volume and open interest suggests that recent support is not fund related
↔ Next minor chart resistance levels are the 50 day MA at 448 and previous lows in January at 447 ½
Beans – May reached a key resistance of 1189 ¼ and stopped the bounce, today that level is 1185
↓ May reached a 3 ½ month major downtrend line of resistance and held, today that line is at 1185
↑ Better general support is expected this week due to last week’s exports recovering back up to 680K
↑ While some acreage is expected to move from corn to beans at the end of the month, total acreage
between all three crops expected lower so general light support is expected anyway
↔ Friday will have two important reports for this market, the first being NOPA crush which slowed last
month so a recovery is now needed and the COT report to show if funds are still selling
Wheat – Overseas markets are now the #1 short term influence on US wheat
↓ Overseas wheat prices have been the number one influence on our day-to-day market movements
with overnight overseas wheat lower again last night
↔ Recent cancellations from China are a good example of why overseas wheat is guiding our market
with China cancelling US purchases 3 days in a row for lower cost overseas choices for wheat
↓ While overseas weed has recently been on a three day bounce to help offer short term support to
our wheat, the longer term trend is still lower making moves to new 3 year lows on a regular basis
Cattle – BB continues higher, trade remains cautious, most factors point to $1 higher cash this week
↔ Yesterday’s PM BB was choice +1.84 Select +1.45 packer BE at 192.96, packer cushion $8.29
↑ BB, still the #1 guide for cash/futures is still grinding higher keeping packer profits over $8
↑ A recent, further, slowdown in slaughter hints that beef may be able to remain supported
↔ The recent slowdown in slaughter may eventually cause a backup in cattle numbers resulting in
higher showlists but as of this week that is yet to be seen, this week’s showlist is +3300
↔ Futures trade continues to be cautious with yesterday's close putting most contracts right in the
middle of the recent 40 day sideways range
↔ Choice + Select is at 608, some still feel active resistance will be seen at 610