Corn – Overnight trade goes back to fear trade, have not seen an 8 AM sale for corn since Nov 25th
↓ As soon as Euro markets opened last night all grains saw a new round of pressure, possibly fearing
tariffs again but there wasn’t much in fresh tariff news yesterday/last night
↑ As has been the case for a month now, better support is expected around 425 – 430
↓ Trade may be getting concerned again at not seeing an 8 AM sale for corn since Nov 25th, it may
suggest we could see another disappointing export report Thursday, that would make 2 in a row
↔Fundamentally it is too early to say exports are slowing but we should expect fear trade to continue
Beans – Back to fear trade last night, SA maps unchanged, Thursday’s weekly exports will be strong
↓ Euro selling stepping in again, the way the selling is hitting beans most suggests there is again
concern about China but very few new China headlines were seen last night
↓ There is little doubt that consistent light pressure is seen from continued solid looking SA weather
maps, it won’t be until early next year when beans move into they key yield determining timeframe
↔The new recent range for Jan is 980 to around 990 although there was a move yesterday to 999
↑ Tuesday’s crop report should not change carryout yet that should still be seen as supportive with Jan
remaining well under the 1035 number that last month’s 0.470 carryout suggests
Wheat – After a technical bounce yesterday, resuming the downtrend last night, near contract lows
↓ Yesterday saw a technical bounce but last night resumed the downtrend
↔Last night March CHI moved even closer to contract lows of 558 ¾ which is a key level to watch
↔Mar CHI wheat is 4.61% underpriced so next week’s crop report could offer short term support
Cattle – BB quickly back to lower again, trade pricing in cash down $2 this week at 188
↔Yesterday’s PM BB was choice -2.18 select -1.67 packer BE at 186.11, packer cushion -$3.74
↔Trade quickly shrugged off the plant closing news yesterday but even the bounce that was seen still
prices futures at a level that assumes a cash level of 188 which would be down $2 this week
↔Boxed beef is not in any clear trend right now, it is slowly recovering but doing so with 2 up days
followed by 1 down day, it is not seeing consistent sizable support yet
↔If packers pay steady cash this week at 190 it would match their record losses, if they pay higher
cash at all this week it will be new record losses
↔Yesterday’s plant closing won’t affect slaughter much but does suggest we watch for more headlines