Corn and wheat higher to start Wednesday, with soybeans and livestock lower.
DuWayne Bosse, Bolt Marketing, says corn and wheat are seeing end of the month short covering and buying after wheat scored new contract lows in Chicago and Kansas City futures.
Some pressure has been taken off the markets now that First Notice Day is in the rear view mirror.
Going into delivery period for the May contracts, he says there was some fund liquidation and farmer selling or pricing/rolling of basis fixed contracts.
Fresh demand has surfaced with the price break in corn with another flash sale of 4.7 million bu. of corn to unknown destinations this morning, following a 4.7 million bu. sale to Spain Tuesday.
Soybeans are under pressure on end of month profit taking on corn/soybean spread unwinding.
Bosse also says there are concerns about the continued tensions between the U.S. and China on trade.
Soybean oil continues to see profit taking which is also a drag on soybeans.
Cattle are lower with profit taking after both live and feeder cattle made new contract highs Tuesday.
However, he says that can be expected as it is end of the month and funds are very long in that market.
Plus, the S&P is down Wednesday morning as the 1Q GDP figure was disappointing down .03%, when the trade was expecting a slight increase and the lack of progress with China doesn’t help Bosse says.
Lean hog futures are seeing follow through technical selling and fund long liquidation and profit taking as it is end of month and futures are at a premium to the cash index.
