Market News

Corn closed higher; soybeans, wheat lower

Soybeans were down. Traders want to see if the trade agreement with China is signed in Washington Wednesday and what details there will be about ag purchases. On Sunday, Treasury Secretary Steven Mnuchin said, again, that China has agreed to buy 40 to 50 billion dollars in US ag products.

Forecasts for south American crops are favorable. The USDA’s crop estimates have remained high for soybeans.

Corn closed higher – about the only commodity to do so Monday. Corn found some support from USDA’s lower endings stocks estimate Friday of 1.8 billion bushels.  Corn is also waiting for the signing of the phase one trade deal – there’s a chance corn, wheat and beans could be included.

USDA says it will resurvey corn and beans in five states next spring.

Wheat closed lower, following Friday’s new five-month high. USDA’s new ending stocks estimate on Friday is a small drop from December and continues to support low U.S. wheat prices overall, until more is known about the crop this year.

Cattle and hogs are pressured by uncertainty about demand and the large supplies.  Fat cattle supplies are tight.

The lean hog market continues to dip lower with gains shrinking produced from late November through early January. Hogs are waiting to see what the partial deal with China holds for pork.