GRAINS:
Corn futures were lower with trade fading back to the middle of the recent range with choppy action likely to continue thru the weekend with renewed tariff comments helping to pressure markets. Ethanol margins should continue to hold the recent range. Soybean futures were lower with rangebound action continuing as well with oil leading products. South America weather should keep some relief in play for Argentina with Brazil harvest rolling forward between rains. Basis should stabilize and remain more toward flat in the near term. On the March chart, trade has support at the 20-day moving average at $10.50, which was tested at midday and into the close. Wheat futures were lower with trade scoring fresh highs early overnight before fading with trade still consolidating the upper end of the range further. The Plains are expected to stay cool but not excessively cold with near-term moisture limited.
LIVESTOCK:
It seems as though traders have again found some technical stability following Thursday’s sharp correction. It’s been a burdensome week full of heavy-hitting news headlines that have weighed heavily upon the complex. Between Monday’s reaction to the tariff talks over the weekend, to APHIS’s announcement that Mexican cattle imports were going to resume this week to Thursday’s unraveling news that dairy cattle in Nevada had contracted a new strain of bird flu — it’s been a grim week for traders and the cattle complex to sort through. After seeming unable to catch its breath throughout Thursday’s trade as the market gushed lower — the feeder cattle complex found some support in Friday’s market and is traded mostly steady to somewhat higher before falling just slightly lower at the bell. Seemingly unconcerned about the market’s resistance, the lean hog complex continued to rally into Friday’s closing bell.
