Corn – Another sign of fund buying yesterday, following beans slightly last night, resistance 508 ¼
↑ Open interest was up a strong 32K yesterday suggesting fund buying is continuing in corn ↓ A new tariff headline has beans down slightly and corn following, funds don’t trade overnight so if they are going to add support again today we won’t know until after 8:30
↓ Two resistance levels are upcoming, first the obvious 500 round number then the 7 month high 508 ¼
↔ We should expect changes in tariff news almost daily and will have to be a new factor to keep track of constantly but assuming tariffs don’t cause a major issue with corn, the path is open to 520 fair value
Beans – Latest tariff headline is “talking about a 10% tariff on China” and “Feb 1 date for tariffs”
↓ Overnight adding some resistance on seeing headlines about a possible 10% tariff on China that may start Feb 1st, these were seen at 4:54 yesterday
↓↑ On the bearish side trade reacted to no new tariff headlines yesterday that are now 10% today, on the bullish side these 10% tariffs are still nowhere near the 60% tariffs he mentioned earlier
↑ An open interest increase of 8K yesterday hints at fund buying but not on the same clear scale as corn ↓ Resistance levels are the 200 day MA at 1076 ¾ and the 6 month high of 1100 ¼
Wheat – Tariffs may also apply to the European union, cold moves out of wheat areas
↓ Trump mentioned a possible tariff on the European union although no specifics
↑ The dollar is still easing slightly but much slower than yesterday
↔ After a day of reacting to possible damage from cold yesterday most will start seeing headlines that it is too early to know damage right now, the cold also moves away from wheat areas today
Cattle – Reports of feeders $2 to $6 lower in sale barns yesterday, BB slightly lower, watch the index
↔ Yesterday’s PM BB was choice -1.11 select +0.11 packer BE at 206.88, packer cushion $5.78
↓ Pressure moved into feeder trade yesterday on multiple reports of feeders trading $2 to $6 lower on Monday/Tuesday, some of that also showing up on the feeder index
↑ Yesterday’s feeder index was estimated to be lower but came in at +0.96, this is something to watch closely as we now have conflicting reports of what to expect next on this index
↔ BB slightly lower again but not weighing on the packer cushion too much yet
↔ Will watch for starting cash bids, futures finished yesterday already priced $1 under last week cash assuming a normal basis level for this time of year