Minneapolis and KC Wheat continued their nice rally overnight trading up some 7 to 10 cents while Chicago wheat was also higher. Soybeans and the entire soy complex seemed to continue their correction overnight while corn was just slightly higher. Now on corn, it’s slightly higher just one day ahead of USDA’s next WASDE report and a short time before USDA releases its next report of weekly export sales. With 2.59 billion bushels (bb) of corn export sales already on the books for 2020-21, it is quite possible Thursday morning’s report could show more corn export sale commitments than USDA’s 2.60 bb export estimate for all of 2020-21. That is part of the reason analysts in Dow Jones’s pre-report survey are expecting USDA to lower its estimate of U.S. ending corn stocks to 1.346 bb on Friday.
On China’s Dalian exchange, May corn was up 1.6%, May soybeans were down 0.7%, September soybean meal was up 0.1% and May bean oil was down 1.9%. July common wheat on China’s Zhengzhou exchange was up 0.04%. June Malaysian palm oil is trading slightly lower.
With boxed beef prices climbing sharply higher and showing no signs of cooling off, feedlots need to be on their A-game and need secure as much profitability, positioning and leverage in the market while they have the opportunity. It’s been right at a year since fat cattle have traded for more than $120 and this should only be the beginning of the market’s rally. As boxed beef prices continue to rally, feedlots need to get bolder about asking more for their cattle and demanding that packers pay up. Packers are getting paid more by stronger boxed beef prices, and the only way to trickle those funds down into the feeding sector is to demand it.
Traders are starting to move their positions in hogs as the April contract is set to expire next week, and consequently the futures contracts for the summer months are finding ample support. The market’s fundamentals are still holding strong and are prodding the market along to keep trading higher. Looking to Thursday, one major speed bump ahead could be a weaker export-sales report.