Markets were higher except soybeans on Thursday.
Corn saw follow through buying after bouncing off support Wednesday. However, Jeff Hoogendoorn, Professional Ag Marketing, says the corn market has been trading in a range and may have a tough time getting back to the top of that range without weather to push it.
Hoogendoorn says the weather looks like it will allow farmers to make good planting progress. “So, I’m afraid that’s going to be a bit on the negative side for the corn market in the short term,” he says. However, with only 90 million acres of corn being planted by farmers that will make any weather issues more of a supportive catalyst for speculators to buy.
So, will the funds stay short in the grain markets heading into the growing season? Hoogendoorn says speculators are not traditionally short ahead of the U.S. crop season. “I think they could cover a bigger portion of that position as you get into the last half of April.”
Soybeans fall on disappointing weekly exports of only 7.1 million bushels and the flash sale of 5.6 mb to Mexico did little to improve price action.
Cattle futures stage a recovery rally as the market is oversold and despite some lower cash trade in the North at $188-$189 live and $297-$298 dressed, down $2 to $3 from last week. Yet he says cash has held together better than expected.
Still, can the futures see further buying amid HPAI headlines and uncertainty? Hoogendoorn says the funds lack confidence in the market which could make sustaining rallies difficult.
