Corn is up 3 to 6¢ while soybeans are down 15¢ to 19¢. Wheat prices are quietly higher, but off the overnight highs. One thing traders are watching closely are the bull spreads in the grains. If the market was truly going to roll over and enter a new trend, the bull spreads would be leading the way. Those spreads have held together with the recent weakness.
The USDA daily export sales report did confirm a total of 534,000 metric ton soybean sales to China. This follows the big corn sales announced on Friday morning. However, the grain bulls have not been able to turn this news into higher highs on the charts.
The outside markets are under selling pressure this morning. Crude oil is down $5 per barrel while RBOB gasoline is down 12¢. Natural gas futures did make a lower low than Friday, but prices did bounce off the 20-day average overnight.
Livestock futures are softer this morning after a perceived bearish Cattle on Feed report from Friday. Feeder cattle are down $1.27 to $1.75. Live cattle are also under selling pressure as futures are down $2.00 to $2.37. Lean hogs are down 45¢ to $1.75 lower.
About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.