U.S benchmarks are set to open lower due to mounting uncertainties in the Middle East. Price action digested the killing of Iranian General Soleimani Friday and quickly recovered from session lows despite Iran’s promise to retaliate.
Live cattle futures were mixed with the February contract trading near unchanged, by the close. Volume has slowed down considerably with the holiday just around the corner, but that could change with some fundamental headlines coming down the pipeline.
January soybean futures continued to climb higher yesterday; we are attributing that to continued short covering. The positive headlines are starting to fizzle out, this could lead to a bit of a pullback into next week’s option expiration.
U.S benchmarks are holding steady at record levels after avoiding the feared December 15th tariffs. Although details of the “Phase One” deal remain few and far, we discussed yesterday how an actual deal took a back seat to the potential of new tariffs.
Soybeans skyrocketed higher on Friday but closed well off of the highs as details around the Phase 1 trade deal led to confusion. The market is trading against those highs in the early morning trade as some of the details have been ironed out over the weekend.
Corn futures broke lower yesterday after failing to find a bullish fundamental catalyst in USDA report. We look to buy with the expectations that we see a technical double bottom and then demand shift by the turn of the year.