Johnston Pro Farmer Senior Markets Editor
as of 7:00 a.m. CT
Soybeans make further
chart improvements... Soybean futures made further technical chart
improvements yesterday, with May beans moving and closing above last week's high
of $10.30 3/4 -- posting the highest close since early January. Next resistance
lies at $10.69 -- the January 12 high. The contract could correct to around the
$10.10 level without violating uptrending support.
support is coming from tightening old-crop supplies and rumors of stepped up Chinese
buying of U.S. beans. Traders are also noting disappointing Argentine soybean
yields and the ongoing soybean export tax dispute, which is keeping importers
headed to the U.S.
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calls. These calls originate more than three hours before the open
-- use caution, things change:
Corn: 1 to 2 cents lower.
Futures saw light profit-taking overnight. Futures closed 5 to 6 cents higher
yesterday, which was near the middle of the day's trading range. Corn was boosted
by corrective short-covering amid ideas recent losses were overdone. Corn also
got a strong boost from soybeans, which posted double-digit gains. Short-term
trading boundaries for May corn futures extend from the March 30 low at $3.76
3/4 to the April 2 high at $4.07 1/2.
Soybeans: 4 to 5 cents higher.
Futures were slightly higher overnight to improve on yesterday's strong performance.
Futures closed 12 to 15 cents higher, with meal and soyoil seeing strong spillover
support. Front-month soybean futures have moved to their highest level since
late January, supported by tightening supplies and rumors of stepped up Chinese
buying of U.S. beans.
Wheat: 3 to 5 cents higher. Futures were
higher overnight on spillover from soybeans and due to short-covering. Futures
saw a choppy day of trade yesterday, seeing periods of spillover from corn and
soybeans, while upside potential was limited by the overall bearish outlook. Chicago
wheat closed mostly 1/4 to 1 cent lower. July Chicago wheat briefly penetrated
resistance at the previous day's high, but posted a low-range close. Support lies
at Monday's low of $5.27 1/4 and extends to the $5.13 3/4.
Cash cattle expectations: Watching
beef market. The beef market has posted back-to-back strong performance to
start the week. Choice values were up $2.35 and Select rose $2.53 yesterday. Movement
of 189 loads is decent, but needs to strengthen in order to give feedlots the
upper hand due to this week's larger showlist.
call: Mixed. Futures closed moderately to sharply lower yesterday and finished
near session lows. Futures extended losses throughout the session on pressure
from the stock market. The Dow Jones Industrial Average was more than 100 points
lower as cattle futures closed. There is also some trepidation toward the cash
cattle market. Even though beef prices continue to firm, there's some skepticism
that packers will continue to raise cash cattle bids as margins are solidly in
Cash hog expectations:
Steady to firmer. The cash hog market is called steady to firmer as
some packers are in need of supplies. Pork cutout values were up 67 cents yesterday
to help profit margins remain in the black. After a prolonged spell in the red,
packers will want to see margins remain in the black.
call: Mixed. Futures extended losses to close 85 cents to $2.15 lower yesterday.
Early pressure came on spillover from the equity markets, as the U.S. stock market
faced pressure amid disappointing retail sales data for March. Futures were also
pressured ahead of today's noon, CT expiration of April hogs. The CME lean hog
index is projected down 25 cents to stand at $56.71 tomorrow and April hogs are
still trading at around a dollar premium to the index.