GRAIN CALLS
Corn: 2 to 4 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: 5 to 8 cents higher.
GENERAL COMMENTS: Grains led a rebound overnight, impressive given continued strength in the U.S. dollar index. Soybeans followed corn and wheat to the upside, seeing modest gains, though continue to trade in a coiling pattern on the daily bar chart. Front-month crude oil futures continue to press higher, though multi-year high shipments from Venezuela are helping offset a drop in Middle Eastern production.
Latest on the war in Iran: --The war entered its sixth day with no sign of abating. --Aerial strikes continue across region; Iran said attacks will intensify. --Air travel remains mostly disrupted; Qatar will begin relief flights. --Asia shares rebounded, Europe turns positive; Brent rises to $84. --Iran says it offered a uranium deal to the U.S. before the attacks began. --An oil tanker was attacked off the coast of Iraq, suggesting wider risks in Persian Gulf. --Trump says U.S. is faring very well in the war.
China’s government has told the country’s top oil refiners to suspend exports of diesel and gasoline due to an escalating conflict in the Persian Gulf, Bloomberg reported. Officials from the National Development and Reform Commission called for a temporary suspension of refined product shipments to begin immediately, with some exceptions. “China’s curbs on exports reflect a scramble across Asia to prioritize domestic (energy) needs as the crisis in the Middle East deepens, with refiners from Japan to Indonesia and India also cutting back run rates and suspending exports,” said the report.
International Monetary Fund Managing Director Kristalina Georgieva said the war in the Middle East will test global economic resilience and warned that “new shocks in different shapes and sizes” will keep coming. Georgieva warned that a prolonged conflict could affect energy prices, market sentiment, economic growth and inflation, “placing new demands on the shoulders of policymakers everywhere.” The IMF is closely monitoring the Middle East conflict, and will incorporate its findings in the World Economic Outlook that will be published in April, Georgieva said.
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CORN: May corn futures made up all of Wednesday’s loss overnight. Resistance stands at $4.49 3/4 on continued strength. Support comes in at $4.43 3/4 then the 40-day moving average at $4.41 1/2.
SOYBEANS: May soybeans continue to coil on the daily bar chart. Prices have traded within Monday’s range all week. Resistance stands at $11.75 then $11.80, while support stands at $11.62 1/2 on a turn lower.
WHEAT: May SRW futures bounced overnight. Bulls are looking to reclaim resistance at $5.75 then $5.80 on continued strength. Tentative support lies at $5.71 1/4, with further selling finding support at yesterday’s low of $5.64 1/2.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Higher.
CATTLE: Live cattle futures are expected to open higher in a continuation of recent strength. Bulls rebounded following fund driven selling the past couple days. The fundamental outlook remains bullish as tight supplies continue to underpin prices. Meanwhile, cash trade remains slow so far this week with very little trade taking place. Choice beef continues to inch higher, rising another 52 cents to $388.57.
HOGS: Lean hogs are expected to open higher in a continuation of yesterday’s strength. Bulls were not hindered by weaker cattle futures yesterday and managed to push futures to fresh highs. The CME lean hog index is up another 34 cents to $90.18. Pork cutout continues to trade near recent highs, rising another 12 cents to $98.62 Wednesday. A $10 drop in ribs weighed on the total, as most other cuts saw gains.