Corn, soybeans and cattle all higher on Thursday, with wheat and the stock market lower.
Darin Newsom with Barchart says corn and soybeans were higher on technical buying and adding some weather premium with a hot dry extended forecast for Argentina and Southern Brazil.
He says fund traders are already long in the corn market and pushed futures right into the next layer of chart resistance.
“The high in March corn was just under the $4.60 area on Thursday and corn seems to move towards round numbers,” he says.
In Newsom’s opinion, strong demand has supported the rally and must continue in order for corn to break through and close above these chart resistance areas.
Soybeans and soybean meal also saw fund short covering and spillover support from the higher corn market.
Argentina’s dry weather has helped move soybean meal to new highs for the move as well but Newsom doesn’t believe there are many reasons for the funds to keep covering short positions.
He’s referring to the projections for a record crop in Brazil and possible tariffs at the end of the month under the new administration.
Wheat futures set back in the face of new highs in the U.S. higher dollar index but Newsom believes the biggest reason was technical selling as the funds are already short this market.
Both live and feeder cattle futures made new highs for the move pushed by record high cash in the South, with March feeders making a contract high.
Fed cash trade in the South developed at $195 to $196, which was record high and up $2 to $3 from last week’s weighted average.
Northern cash came in at mostly $310-$312 dressed, up $3-$4 from last week.
Cattle also brushed off the lower stock market but Newsom is watching the financial indexes for an indication of a top after profit taking to end December 2024.
He says that may influence money flow in the outside and agricultural markets in 2025.
