Sideways trade continues for corn, bean markets… The soybean and corn markets were boosted today by “significant progress” on U.S./China trade talks. USDA data is also flowing again and South American weather is a greater focal point as Brazilian soybean crop estimates are declining. There’s plenty of news that could move markets, but both remain hemmed in their months-long sideways trading ranges. Based on recent price action, soybeans appear most likely to post an upside breakout, despite bearish fundamentals. A price rally should be sold. Wheat futures faded this week as traders have grown impatient waiting on export demand for U.S. wheat to improve. Cattle futures flashed strong signs the rally since November is running out of steam. But we anticipate limited downside risk amid strong beef demand and poor feedlot conditions. Traders removed more premium from hog futures as market-ready supplies are higher than USDA implied in December and there has been no news of potential Chinese pork buys.
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