Morning Market Report- 3/24/21- Grains Are Mixed at Midweek


Grain markets are mixed overnight with corn prices slightly weaker, the soy complex mixed to firmer while wheat contracts are also a mixed bag. Ag markets are marking time until the major USDA reports a week from today. Soybeans on China’s Dalian Exchange were up 1.33% while soybean meal was up 1.14%.

WTI crude oil futures have not been able to climb back over $60.00 per barrel. Prices at the pump in the U.S. had been angling toward $3.00 per gallon nationally, a level which could provide sticker shock to consumers as they venture back after a year of social distancing. The U.S Dollar Index is firmer overnight, trading just below its 200-day moving average and the highest levels since November. Precious and industrial metals are firmer overnight.

There was a feeling of bullishness in the air Tuesday as cattle futures moved back above price resistance. The prospect of higher cash this week as well as a stronger indication that the seasonal spring rally is beginning gave confidence to traders to own futures contracts. It was a nice way to celebrate National Ag Day. Boxed beef prices were strong, possibly indicating consumer demand will remain strong in the coming weeks. Stimulus money is being received and restaurant demand is improving. Cash trade has not yet taken place, and it is very possible there will not be any Wednesday as current market fundamentals may have feedlots holding out for higher prices.

Hogs were again on fire Tuesday after futures took a little breather. Only April made a new contract high with the rest of the contracts stopping just shy of new highs. There is just no stopping the aggressiveness of packers as they continue to pay higher prices, and rightly so. Demand is strong with consumers not showing any price resistance. Cutouts were very strong, underpinning the market. Technical indicators are enticing traders to buy futures as the trend is up with more room left to the upside. The hog supply is expected to be lower during the second quarter and in another week, the market will be entering that period. The quarterly Hog and Pig report on Thursday could temper trader aggressiveness Wednesday.

Farm and Ranch Director Jesse Allen has the latest: