Corn – Fund buying eases some speculative resistance but cash selling still likely at levels near 450
↑ It appeared yesterday that seeing funds as buyers of 78K corn helped to ease back speculative selling
↓ Cash selling was active on the last move to 450 and will be expected again at or near 450
↓ During strong production years (like this year) this week is seasonally the strongest week for basis which may also attract some producer selling
↔470 is fair value and that number could be the reason for the recent surge in fund buying although
support could take time, cash selling right now and caution ahead of the Jan crop report limit bounces
Beans – Crush slightly disappointing, next key support in Jan is 975 ¼, in March 982 ½
↓ Crush came in disappointing at 193.2 mil bu, expectations were for 196.7 mil bu
↓ It is likely some traders anticipated a poor crush report before seeing the report and that is likely due to seeing an ADM crush plant sit idle for 6 weeks recently (that plant is now running again)
↔Jan and Feb are both approaching key support levels, Feb is likely to take over as lead contract today or tomorrow so that may be the chart level worth watching closer
↔Morning maps increased rain for ARG, recent maps were drier but never overly threatening
Wheat – Resuming a drift lower, contract lows for March CHI are 540 ¼
↔A light bounce seen overnight but not before making new lows for the recent move, resuming thedown trend over the last 4 days and not far from contract lows again
↔That contract low level in March CHI is a key level to watch at 540 ¼
↔There is choppy overseas news but no real events to expect major influence on wheat short term
Cattle – Cautious trade moves back in, feeder index -0.86, BB actively higher, fund selling?
↔Yesterday’s PM BB was choice +0.98 select +5.71 packer BE at 192.70, packer cushion $0.31
↑ BB actively moving higher lately, enough to bring gross packer profits above $0 since November 6th
↓ Cautious trade was seen again yesterday in what might have been fund selling, there were the appropriate volume spikes to suggest fund selling but the OI report was unchanged
↓ Did cautious trade start due to a lower preliminary feeder index? We know that this market has become quite sensitive to that index lately but was being down 0.86 the reason to spark caution?
↔For now we would likely be best to watch both BB and the feeder index, for the time being the feeder index looks to be the #1 influence