Corn – Holding solid support even with beans still selling, basis and spreads suggest not storing
↑ Mostly held off from following beans lower yesterday and did so again last night
↔Holding solid support even with beans still selling, basis and spreads suggest not storing
↔This is also the seasonal strongest week for basis, another factor which suggests not storing
↔Price difference out to July is so small it may not even cover interest charges or the small costs that
are involved in storing on site, it will be a gamble in 2025 to store hoping for surprise bullish news
Beans – Fears coming from multiple angles now, price now furthest from fair value all year
↓ Despite yet another 8 AM sale yesterday of 319K, trade still fears exports ending at any moment
↓ There is concern a $1/gallon blenders credit for bio diesel might be allowed to expire
↓ The Argentine Peso continues to de value which makes that area a cheaper source for beans to
importers each day it moves lower, keep in mind though that BRA exports many times more than ARG
↔Beans continue lower on “what if”, “What if exports come to a halt?” (they haven’t yet) “What if the
Peso keeps moving lower?” “What if the blenders credit expires?” all worries but no facts currently
↔Tomorrow may show solid exports, Friday may see the gov’t avoid a shutdown, 2 positive potentials
Wheat – Holding contract lows but not much support seen lately, Russia lowers wheat estimate
↔US exports remain moderate which is enough to hold contract lows of 540 ¼ (March CHI) for now
↑ SovEcon lowered their production estimate from by 3 MMT to 78.7 MMT
↔There are no major cold threats for wheat areas in the 15 day forecast
Cattle – Feeders reacting instantly to the feeder index, fats mostly neutral waiting for cash bids
↔Yesterday’s PM BB was choice -1.74 select -1.07 packer BE at 191.81, packer cushion -$0.58
↑↓ Feeder cattle are reacting to the minute on any changes to the feeder index
↔Monday’s feeder index was -0.86 and feeder futures were -2.10, yesterday’s feeder index was +0.81
and feeder futures were +1.925, this is making it quite clear what feeder futures traders are watching
↔Live cattle futures trade is starting off middle of the road right now, finishing yesterday priced at a
level that factors in a steady cash trade for this week
↔BB down yesterday but still recovering in the bigger picture, right now though BB has become #2
influence as the feeder index and Mexico border headlines are currently #1