Coronavirus fears created a risk-off (sell first, ask questions later) atmosphere on Friday and that has continued through the weekend and into Monday morning markets. Nearly 3,000 people are infected with a mortality rate said to be around 3%. Nearly everything is under pressure, safe havens like gold and silver are catching a bid.
Corn futures caught a bid yesterday on some good export news, sales of 255,224 metric tons to Guatemala and Unknown (presumably South Korea) were reported. Export sales this morning came in at 1,006,900 metric tons, 28% higher than last week and 92% above the 4-week average.
March corn futures were little changed yesterday, with little new news hitting the wires. Export sales are pushed back to tomorrow morning. As noted for the last week, we believe option expiration will continue to keep a lid on the market at 390.
February live cattle traded in another tight range, treading water on the 50-day moving average at 125.85, close to the middle of the recent range. The market is starting to look and feel a little heavier.
March soybean futures broke lower yesterday on what was largely technical selling. Yesterday’s weekly export inspections report came in at 1,199,000 metric tons, this was at the top end of expectations.
February live cattle traded in its tightest range in some time, leaving us little changed (again) on the technical landscape. Resistance remains intact from 127.225-127.90, above there is uncharted territory.
Last week’s signing of Phase-1 was a classic buy the rumor, sell the news response. The substance in the trade deal remains suspect in our eyes. China has stated several times that imports will be based on market conditions, ie: supply/demand and price (same as before).
U.S benchmarks are consolidating lower in a healthy manner. The slightest signs of exhaustion crept into the market Friday with the Russell 2000 small-cap index finishing 1% from a new swing high achieved on the opening bell.