Agriculture

March soybean futures broke lower yesterday on what was largely technical selling. Yesterday’s weekly export inspections report came in at 1,199,000 metric tons, this was at the top end of expectations.
February live cattle traded in its tightest range in some time, leaving us little changed (again) on the technical landscape. Resistance remains intact from 127.225-127.90, above there is uncharted territory.
Last week’s signing of Phase-1 was a classic buy the rumor, sell the news response. The substance in the trade deal remains suspect in our eyes. China has stated several times that imports will be based on market conditions, ie: supply/demand and price (same as before).
Soybean futures continued to roll over on a continuation of the “buy the rumor, sell the news” reaction. On top of the dwindling good news, there was some bearish news coming from South America,
Grinding data this week has cocoa futures testing highs from 2018. The March contract reached 2729 on Thursday. Asian demand increased and provided market support – leading to more speculative buying.
In yesterday’s report we wrote: “It will be nice to get some clarity on the “trade deal”, but I wouldn’t hold your breath for something magical to happen.
China promises significant Soybean purchases after signing Phase One trade deal today. Farmers looking forward to more demand.
February live cattle rallied to round out Friday’s trade on weather concern and hopes that cash would surge after the close. Both of those premium builders came up short which helped erase those gains in yesterday’s session.
Soybean futures were mixed yesterday as much of the optimism around the Phase-1 deal seems to be priced in (see the 75-cent rally in December for reference).
February live cattle rallied to round out Friday’s trade on weather concern and hopes that cash would surge after the close. Both of those premium builders came up short which helped erase those gains in yesterday’s session.