Not a lot of new news for the market to trade on this morning. To keep a bull market pushing higher, we need to feed the bull fresh news daily. Today feels like a slight correction in a broader bullish market.
May corn futures are 4¢ lower this morning. May soybean futures are 1¢ lower. May Chicago wheat is 5¢ lower, and May Kansas City wheat futures are 4¢ lower. May Minneapolis wheat futures are 10¢ lower.
China stepped in again this morning and bought 132,000 metric tons of old-crop soybeans. We continue to see China very active in buying old-crop bushels from the U.S. as the crop in South America is a lot smaller than initially anticipated.
Livestock prices are higher this morning. Live cattle are 20¢ to 30¢ higher. Feeder cattle are $1.45 higher and lean hog futures are 20¢ to 30¢ higher. Livestock markets were hit hard yesterday. We are seeing an exit of money come out of the beef and pork complexes as COVID seems to be rearing its head again in China and Japan causing demand to slow up.
Crude oil is up 25¢ this morning and the stock market is down 248 points to start off Wednesday’s trade.
Watch where we close today. If we can get May corn futures to close above $7.60, this could push us up to old contract highs.
About the Author: Cory Bratland is a chief grain strategist with Kluis Commodity Advisors.