Livestock markets retreated on Friday as a risk-off atmosphere evolved, following an increase in tensions between the US and Iran. Market participants had the weekend to digest the information and the market recovered those losses today, taking us right back to the December 27th highs
U.S benchmarks shook off Middle East tensions and surged higher on the opening bell yesterday. The S&P turned positive by noon and extended gains into the close.
Fundamentals: Soybeans took a tumble on Friday as US/Iranian tensions rose, prompting some profit-taking on concerns it could throw a wrench in trade negotiations with China.
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.
