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Agriculture

March Soybeans Down 8¢ on USDA Announcement

2024-12-13

Starting the day, March corn shows a minimal decline of less than a penny. This comes as the market continues to navigate through various trends and levels. Meanwhile, March soybeans have taken a significant hit, down by 8¢. The USDA's announcement this morning about unknown destinations purchasing 200,000 metric tons of soybeans for the 2024/2025 marketing year has added a new element to the market dynamics.

March Wheat Contracts: A Mixed Picture

CBOT wheat is down 4¢, KC wheat is down 3¼¢, and Minneapolis wheat remains unchanged. This mixed trend within the wheat market showcases the complexity and volatility of the commodity sector. As traders analyze these movements, they try to make sense of the underlying factors driving these changes.

Commodity Futures and Support Levels

Naomi Blohm, senior market advisor at Total Farm Marketing, pointed out that after testing overhead resistance levels mid-week, corn futures are now 10¢ off the highs. Support levels are at $4.40, then $4.35, with significant support at $4.30, which is the bottom of the uptrend line and near the 100-day moving average. This analysis provides valuable insights into the potential price movements and support structures in the corn market. Over the past decade, the 'Christmas rally' for March corn futures has averaged 33¢. This rally almost reached 26¢, leaving traders wondering if it will continue into the year end or if corn will return to range trading. Four out of the past 10 years, the rally stopped in conjunction with the December WASDE.

Livestock and Energy Markets

February live cattle are up 58¢ this morning, indicating a positive trend in the livestock sector. January feeder cattle are also up 40¢, adding to the overall bullish sentiment. On the energy front, January crude oil is up 61¢, reflecting the fluctuations in the global energy market. Meanwhile, the U.S. Dollar Index December contract is up to 107.06, which can have an impact on various commodity markets. December S&P 500 futures are up 8 points, while December Dow futures are down 36 points, showing the divergence in the stock and futures markets.Published: 9:27 a.m. CT