February Crude Oil prices registered a new contract low below $47 during the initial morning hours, but managed to turn positive ahead of the US opening.
March soybeans closed lower yesterday and down 19 1/2 cents from the early highs. Traders also noted good farmer selling of soybeans on the morning rally.
March soybeans fell 15 1/4 cents for the week last week and Informa pegged planted area for the coming year at 88.78 million acres.
March soybeans traded down as much as 7 1/4 cents in an actively traded overnight (lo 10.1650) but a recovery in outside forces and continued strong gains in wheat due to Russia export restrictions was enough to support a strong bounce.
China’s Shanghai Composite closed lower for the fifth consecutive session, with pressure coming on lower energy prices and profit-taking from the latest Shanghai/Hong Kong trading link.
Trend-following fund traders (hedge funds) still hold a hefty net long position. First quarter pork production is expected to be down just 110 million pounds from the 4th quarter as compared with a drop of 489 million pounds last year.
The hog market closed higher for the 4th session in a row yesterday as February hogs pushed up to the highest price level since October 15th.
Cocoa may find early strength this week with the weakness in the Dollar, but I’m still looking skeptically at any rallies.
Cocoa is holding its ground above the late January/early February lows, and could benefit from the oversold condition.
The sugar market faces the first global supply deficit in five years this season, even if the deficit is a small one.