Grains Strong; Cattle Weak
Feb 27, 2012
Grains have rebounded after a weak open this morning.
Soybeans have rallied to their highest price since September 27th, caused by fund buying and continued fears that South America's pruduction will fall short of expectations. March Chicago Wheat has rallied 12c off its lows to $6.42. Traders believed wheat would be under pressure today due to wetter forecast for much of the midwest and continued fund selling. Old crop corn is up 2 cents and 10 cents off the lows, while new crop corn is down 1 cent. New crop corn is thought to be under pressure due to the estimated 94 million acres and a baseline yield of 164 bushels per acre.
Feeder cattle are 70-95 lower this morning after a bullish cattle on feed report Friday afternoon. Traders are saying this is a buy the rumor, sell the fact situation. Live cattle are up .22 in Feb, but down in the back months. Feb Live Cattle futures expire Wednesday.
Justin Lewis, M.B.A.