Market Update: Week Ending with Profit-Taking Ahead of Presidents Day

As the trading week drew to a close, market patterns revealed significant trends across key agricultural commodities. On Friday, March corn closed slightly higher, up ½¢, settling at $4.31¾ per bushel. However, March soybeans faced a decrease, falling 3¾¢ to $11.48½ per bushel.

The wheat market also saw declines, with March CBOT wheat dropping 3¾¢ to $5.48¾ per bushel, while March Kansas City wheat experienced a significant decrease of 12¼¢, closing at $5.53¾ per bushel. Concurrently, May Minneapolis wheat fell 8½¢ to $5.78¾ per bushel.

Analysis from Experts

Karl Setzer, a partner at Consus Ag Consulting, noted that much of Friday’s trading was characterized by consolidation and profit-taking, particularly with the upcoming long weekend for Presidents Day. “With the market closed on Monday, traders are adjusting their positions, resulting in limited market interest as fresh news remains sparse,” Setzer explained.

Weather conditions across South America have been mixed, with some regions benefiting from rain while others remain dry. The ongoing focus remains on Argentina, especially following another week of declining crop ratings.

Livestock and Crude Oil Update

Turning to livestock, April live cattle witnessed a slight decline, down 2¢ to $240.62 per hundredweight (cwt). However, March feeder cattle saw gains, increasing by 42¢ to $366.15 per cwt, while April lean hogs dropped 55¢ to $91.27 per cwt.

March crude oil prices were down 22¢, settling at $62.62 per barrel as of 3:03 p.m. CT. The stock market also experienced declines, with the S&P 500 Index down 7.28 points and the Dow Jones Industrial Average dropping 41.62 points. Additionally, the March U.S. Dollar Index decreased by 47 points.

Morning Market Movements

As the trading day began, March corn showed a decrease of ¾¢, dropping to $4.30½ per bushel. March soybeans opened lower as well, down by 10½¢ to $11.41¾ per bushel. March CBOT wheat also saw a marginal dip, decreasing by 5¢ to $5.47½ per bushel.

Setzer remarked on the light pressure observed during the overnight session: “This dip is not surprising given the active trading we’ve seen this week. Profit-taking ahead of a long weekend is quite common,” he stated. He noted that the market’s fresh news was minimal due to the earlier data releases, such as Tuesday’s WASDE report.

Some activity in the livestock sector showed improvement, with April live cattle up 40¢ to $241.05 per cwt and March feeder cattle rising $1.62 to $367.35 per cwt. April lean hogs increased by 35¢, settling at $92.17 per cwt.

Conclusion

Ahead of the Presidents Day market closure, traders are focusing on strategic positioning, given the limited market-driving news. As weather conditions continue to evolve in significant agricultural regions, all eyes will remain on upcoming forecasts and their potential impacts on market dynamics.

Published: 3:07 p.m. CT

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