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Happy Easter. My daughter had to memorize Romans 6:23 years ago for Awana's: "For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord." As you celebrate Easter this weekend, I hope this truth resonates with you!
Overnight highlights. Following are highlights of overnight trade:
Corn: 1 to 2 cents lower. Price action was lackluster overnight amid consolidation. Focus in the market this morning will be on position squaring ahead of the Easter weekend, as the markets are closed on Friday. Bulls spread has been a featured activity again this week, as May corn is trading in the upper quarter of the long-lasting choppy trading range while December corn has yet to return above the key $5.50 level to reenter the February trading range.
Soybeans: 4 to 6 cents higher. Futures have seen choppy, back-and-forth price action so far this week, but remain well within the boundaries of the uptrending channel. Futures were stronger overnight amid ongoing concerns about the South American crop, as several private crop watchers once again lowered their estimates this week. Traders are also interested to see this morning's USDA Weekly Export Sales Report to gauge China's appetite for U.S. beans.
Wheat: 1 to 3 cents lower. Futures were weaker overnight on spillover from corn and on strength in the U.S. dollar index. Upside potential has been limited this week by improvement in crop cognition ratings in the Southern Plains due to recent rains, as well as some rains in Europe. This morning traders will be waiting on word about Egypt's wheat tender, as some of their recent business has gone to the U.S. Focus will be on position squaring ahead of the extended holiday weekend.
Live cattle: Mixed. Futures are due for a corrective bounce given the sharply oversold condition of the market. But continued sharp pressure on the beef market will limit buying to short-covering. Choice values slipped $2.45 yesterday and Select was down $2.54. The good news is movement was improved at 266 loads, but that's still far from stellar. Beef values must stabilize in order to shore up support for futures.
Lean Hogs: Mixed. Futures are expected to be mixed this morning, with some short-covering coming on ideas the pork market is working on a near-term low. Pork values were 15 cents firmer yesterday, but with packers' profit margins still in the red, demand for hogs is still not strong. Demand for hogs is excepted to be better after Easter as they work to secure supplies.
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