Plenty of risk off trade on Tuesday, led by soybean oil, as we close in on the all important March USDA Grain Stocks and Prospective Plantings Reports. May corn closed down 7 1/2 cents and May soybeans were down 26 1/4 cents, both pressured by new three-month lows in corn and soybean prices in China. Nearly all of Tuesday’s commodity board is red, while the June U.S. Dollar Index is trading at its highest prices in over four months.
Funds liquidated in large quantities again, with soybean oil making its third limit-down move in the past four days. Funds, as of noon, are estimated to have sold 15,000 corn contracts, along with 12,000 beans and over 8,000 each of Chicago wheat and soybean oil. Just in the past six days, spot bean oil has plunged 7 cents per pound as funds have exited their longs. Kansas City wheat futures have now fallen to a low not seen since Dec. 10.
USDA announced a new flash sale of corn to unknown destinations for 2020-21 this morning — 100,800 metric tons or 3.97 million bushels.
The livestock complex traded mixed with both the live cattle and lean hog contracts leery of trading too much higher and getting extended past what the fundamental side of the market will support. The feeder cattle contracts couldn’t be more excited about the corn market’s lower progression and took the day in stride, although we did see a late selloff in that market and in live cattle.
Farm and Ranch Director Jesse Allen has the closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406