Soybean futures got taken to the woodshed yesterday, alongside nearly everything else. Outside markets have firmed in the overnight/early morning trade which has helped offer relief to beans.
Expect the volatility in the outside markets to continue to be the leader for cattle. Overtime, volatility will come back out and things will stabilize. When that happens, we think some of the best opportunities will be in cattle futures.
Oliver Sloup breaks down the trading day in grain futures markets.
Cash cattle trade started to pick up yesterday, the bulk of it coming in near 113 in KS & TX. The market managed to rally on the back of this news as market participants seemed relieved that it wasn’t lower.
May corn futures continued to drift lower yesterday and the technical landscape has gone from bad to worse over the past few sessions
Live cattle futures were nearly limit down on Friday and nearly limit up on Monday, as mentioned in yesterday’s report and in our interview with RFD-TV, the outside markets will be the driver of price action in the near term.
May soybean futures saw a choppy and volatile trade in the back half of last week as market participants try to grapple with the effects of coronavirus. Friday’s Commitment of Traders report showed funds bought 14,634 contracts, trimming their net short position to 75,130.
May cocoa futures continue to move lower as fear grows that the coronavirus outbreak could continue to get worse. Until a vaccine is in place, which could be six weeks away, the threat of a growing number of cases will continue.
April live cattle tried to stage a relief rally early yesterday morning but failed miserably to hold a flame. Futures continued lower into the close, making new lows for the move and coming within arm’s length of the contract lows from September.
Soybeans got hit hard yesterday, trading to their lowest price since May. The spread of coronavirus has given the funds ammunition to add to their growing net short position.