Corn ended higher for a fourth session and wheat followed on end of month short covering by the funds. Today was first notice day for March contracts so much of the farmer selling and fund liquidation has dried up which also helped support the rally.
However, Arlan Suderman with StoneX says he thinks corn got to a value level for end users. However, he doesn’t think the corn rally is sustainable because the market doesn’t have a bullish story right now.
The soybean market saw pressure from heavy deliveries and poor weekly exports and made new contract lows in the process. Suderman believes there may be more downside risk to the market with Brazil’s continued harvest.
Cattle futures were down again on fund long liquidation, profit taking end of month as well as some hedge pressure. Plus, higher corn prices and steady cash at mostly $183, may have played a role. Suderman thinks this may just be a healthy correction in a bigger bull market.
