January soybeans closed lower for their 8th consecutive session on the back of fund selling and negative reports on trade with China. President Trump stated that it may be better if they wait to make a deal after the 2020 election.
Wheat futures caught a bid on Friday on decent volume and many reporting concerns over winter weather sweeping through the Midwest. The fundamentals are relatively mute in wheat as it appears money flow and technicals are the driving factors near term.
Futures continued to tumble on technical weakness and favorable weather in South America, which is expected to have a big crop. There have been some whispers from an analyst at a large bank that a Phase 1 trade deal could get done over the weekend.
February live cattle futures crashed lower on Friday, testing and holding support pocket from 123.125-123.40. Yesterday they erased all of Friday’s losses and at one point erased all of Thursday’s too, testing a resistance pocket from 125.775-126.30.
Considering the smoke in mirrors jawboning we’ve become accustomed to over these last two years of negotiations, although for face value China’s announcement is a considerable positive, we must still take it with a grain of salt until there is further proof.