Grains are trading lower, with soybeans falling sharply, while cattle rise and weak demand pressures hog prices, said Jack Scoville, vice president of Price Futures Group, speaking to AgDay.
Only wheat gained any price strength, “and the wheat market is still feeling the effects of potential losses not only in France, but in Germany, Poland, and many other European countries,” observed Scoville, speaking from the floor of the CME Group.
Meanwhile, only the cattle and cattle feeder market traded sharply higher, in response to good volumes traded in the cattle cash market late last week, and even the depressed hog market found a little bit of strength, Scoville explained. However strong export demand from China has faded against a stronger U.S. dollar, he noted.
The decline in demand from China has pushed down $90 August hog contracts to $70, according to Don Roose, U.S. Commodities.
“A couple things happened,” explained Roose, speaking on AgDay. “One, we were very optimistic on the demand and what happened is the demand started to fade, particularly from China, so our cutouts just torpedoed lower,” he said.
That resulted in packers bidding lower on cash hogs and funds that were long on hogs started liquidating, “so it was a perfect storm,” Roose explained.