Grain and livestock markets end mixed Tuesday.
John Heinberg, Total Farm Marketing, says corn failed mid-session with conflicting information about guidance being delayed until the new administration for the 45Z Clean Fuel Production Credits.
Corn also saw technical selling after hitting chart resistance.
“We’ve got a lot of moving averages we’re trying to fight through here. If we can get through Tuesday’s high on Wednesday we might be able to challenge that chart area of $4.40 on the March contract. Remember though when we get to that level we see U.S. corn become noncompetitive in the global market,” he says.
Soybeans ended higher with short covering after January bounced off support and with help from higher product values and talk of China buying soybeans.
“That bean oil market has been a driver behind the soybean price rallies since we put our lows in at the end of the summer,” he adds.
Talk of China buying soybeans or more soybean oil and a possible stimulus package being introduced next week to shore up their economy also supported futures.
Wheat futures saw a slight bounce off yesterday’s lows and new contract lows for Hard Red Winter wheat.
A slightly lower dollar also allowed wheat to come up for air.
Heinberg is not sure the market has put a bottom in due to global competition.
Live cattle futures recovered with higher Choice boxed beef at noon and speculation cash trade could be higher again this week.
However, can the market get through resistance on the charts, especially Feb. live cattle at $190?
Feeders have had a huge rally as well with tight supplies and the border closed to Mexican imports, but the market is getting overbought with $260 resistance on the charts.
Lean hogs saw some consolidation and Heinberg says that market is overbought and due for a correction.
