Grains settled mixed with corn sharply lower, beans near unchanged, and wheat higher. March corn finished 18 ¼ cents lower, March beans 1 ¾ cents lower, and March wheat up 4 cents.
Corn's break today marks a true key reversal in the March contract. This may lead to more weakness in the near term. The selloff was attributed to the rumors of Chinese purchasing 500 MT's of feed grade wheat which could take away from future corn demand. Fundamentals remain strong, so a large break could still have support coming in below the market.
Soybeans followed corn's weakness and came off its highs as well. Improving weather in Argentina is also seen as resistance in the bean market.
I have included the estimates for the cattle on feed report this Friday:
of estimates of estimates
On-feed on Jan 1 104.2 103.0-104.9
Placed in Dec 113.7 102.8-120.6
Marketed in Dec 105.2 102.9-106.9
We are still feeling the aftershocks of the report with a
Stop Guessing & Start Marketing
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bullish bias to these markets. We will be looking for levels to re-own on further setbacks using May call spreads, but for now I would sit tight and wait for that opportunity to present itself.
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