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
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.
March cocoa futures have rallied this past trading week as we leave 2019 and enter 2020. After the new year, the contract continued the move higher back towards 2550
Oliver Sloup breaks down the trading day in grain futures markets.
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.
A wave of positive trade headlines led to broad-based buying in the agricultural markets. Traders are looking for follow-through in the next few days.
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.
Oliver Sloup breaks down the trading day in grain futures markets.
As of Thursday, cocoa futures were down for the fourth straight session. After the trade above 2600, traders took profit, causing some of this sell-off.