Funds are selling hard in the grains pushing corn and MN wheat to new contract lows and soybeans into new lows for the move.
Randy Martinson, Martinson Ag, says the next area of support in March corn is around $4.25. Traders continue to take carry out of the market as the nearby contract gets closer to delivery due to the big ending stocks at 2.16 billion bushels. However, the other catalyst seems to be rains received and in the forecast for Argentina. Plus, the fast safrinha corn planting in Brazil is weighing on corn with ideas that farmers there will plant additional acres. “The trade was speculating with the dry conditions in Brazil there might be less second crop corn planted but they are ahead of pace and have the fastest start since 2013. So that might even mean a few extra acres,” he says.
Lower soybeans and wheat are also weighing on corn, but soybeans are also trading the more favorable weather is South America. Martinson says March soybeans could go down and test the contract low at $11.45 3/4. However, he is hoping Conab will release lower production estimates on Thursday morning that will stop the selling pressure and provide some reason for the speculative traders to buy.
Minneapolis wheat also made new contract lows and while the other two classes have not, they are still seeing fund selling pressure. Martinson says the lack of demand and positive news have allowed the market to continue to drift.
Martinson says the entire grain complex may have traders positioning ahead of the WASDE although little change is expected in the supply and demand tables.
Live cattle take a breather waiting for cash trade with feeders boosted by lower corn.
Hogs are bouncing after four down days and a lower dollar.
