Soybeans are seeing a strong rally early on fund short covering as even the May contract got above the $12 market and triggered some buy stops. However, the market is also getting help from higher product values. Soybean oil has been on a big rally and May got above the 200-day moving average, but soybean meal is also pushing higher.
Darin Newsom, Barchart Senior Market Analyst, says “I think the move in soybeans is mostly technical as the fundamentals have not changed that much.”
Wheat is lower on poor exports, China’s cancellations of French wheat and talk they may cancel Australian wheat as well. Plus, Newsom says Russia continues to dump wheat at below $200/metric ton on the world market. Weekly exports were also a marketing year low at 3.1 million bushels.
The lower wheat market has drug down corn, but it also hit chart resistance despite good export news. Weekly exports were strong at 50.5 million bushels and Mexico bought almost 4.0 million bushels on a flash tender this morning.
New surveys are being released ahead of the USDA Prospective Plantings Report, but what are Newsom’s thoughts about what the market is saying about acreage?
Cattle futures extended gains early on fund buying and strong seasonal demand with Choice boxed beef around $310. Live cattle made new highs for the move but then faded on profit taking and/or hedge pressure and feeders tumbled as well.
Crude oil has also moved above $80 in nearby contracts. Stronger seasonal demand has pushed the market as well as Ukraine striking Russian oil refineries with drones. Inventory was also lower in Wednesday’s EIA report.
