The U.S. Dollar continues to be trading near multi-month highs which is throwing a wet blanket on grain markets. The risk-off trade created by the spread of coronavirus has and will continue to affect near term money flow in commodities, including corn.
Soybeans have seen a choppy overnight session, trading both sides of unchanged. Phase-1 is officially underway, a silver lining. The bulls will want to see a weekly export business increase in the coming weeks as verification that Phase-1 holds more hope and not just hot air.
This marks the S&P 500 fourth straight session and more impressively the NASDAQ’s ninth with record overnight highs. The combination of central bank liquidity, ultra-low/negative rates, lack of negative news and a warrior of a U.S consumer has fueled this market in recent days.
April lean hogs retreated yesterday but fell short of falling apart. The volatility (up and down) creates an emotional and irrational trading environment, so consider reducing your “normal” position sizing.
Corn futures managed to rally on Friday, putting prices in positive territory for the week. Friday’s Commitment of Traders report showed funds sold 26,655 contracts through February 4th, extending their net short position to 52,045.