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Soybean futures collapsed yesterday on news that Argentina received beneficial rains this week. March has violated trendline support near $12.70. Additional support is seen between $12.56 and $12.33. Longer-term the market will begin to become more focused on the 2014 U.S. crop. The current ratio for corn and soybean prices is at 2.5, anything above a 2.2 favors planting more soybeans.
Wheat prices set new contract lows yesterday. Large global supplies and weak U.S. export demand continue to weigh on this market. This combined with weakness in the soybean market forced wheat prices lower. While prices remain oversold, they will likely need some type of positive fundamental news to spur any kind of significant rally.
Corn prices closed the yesterday with modest losses; given the losses in the soybean and wheat markets. A good export inspection report on Monday continues to provide underlying support for this market. Todayâ€™s export sales report will be key for this market, as it will set the tone heading into the first full week of the new year. This market still faces a USDA report next Friday that is expected to raise production, and could potentially lower domestic demand as the first quarterly stocks report will be released that same day. The market continues to hold support at nearby lows of $4.10 and resistance at $4.30.
Cotton futures closed mixed, as the nearby contracts closed lower and the deferred contracts held onto recent gains. This is a market that is poised for correction as recent gains have the market in an overbought situation. Next weekâ€™s USDA report will likely give us a look at the direction for this market in the near-term as we will get our final look at the 2013 production numbers, which may see yields adjusted lower again. Strong support for this market begins at 80.29-cents and resistance holds at 85-cents.
Rice futures posted solid gains today. March is testing resistance in the $15.50 area, closing yesterday at $15.51. A close above that level would break the market out of the consolidation range that has capped the market for the past couple of weeks. The market continues to be wary of large world stocks.
Cattle prices were higher today. Traders are concerned about forecasts for more severe winter weather in the Western Plains which will limit marketings and hurt performance.
Shell Eggs: Daily Midwest Regional Eggs Comment
Midwest delivered asking prices for next week are 23 cents lower for Extra Large and Large, and 11 cents lower for Medium. Daily producer prices are 4 cents lower for Large, 2 cents lower for Medium, and 3 cents lower for Small. The undertone is weak. Demand is moderate. Offerings and supplies are moderate to heavy. Market activity is slow. Breaking stock prices are steady to lower. The undertone is lower. Demand is moderate to fairly good on moderate to instances heavy offerings. Supplies are moderate to heavy. Market activity is slow to moderate.
Courtesy of www.arfb.com/ag-markets-statistics/report/