Cattle lower early with hogs and grains mixed.
Scott Varilek of Kooima Kooima Varilek says cattle futures are setting back on disappointing cash in the South which came in at mostly $190, which is steady money. The North traded higher with the dressed volume at $312, up $1 from the previous week’s weighted average and $198 live.
Varilek says cattle futures are also seeing some profit taking and there have been reports of the Dodge City, Kansas plant being offline today due to flooding damage. There have also been slow downs in other areas like Dakota City, Nebraska.
The live cattle futures have been signaling the fed cash cattle market is close to topping with the discount it is holding to recent cash. So is the top close?
Varilek says its too early to call a high in the market yet.
Hogs see bull spreading despite big up front supplies in the USDA Hogs and Pigs Report.
Corn and soybeans are mostly lower, hitting 3 year lows, still digesting the USDA reports which showed higher acreage for corn and higher quarterly stocks for all the grains.
Plus the market is trading favorable weather with rains and cooler temperatures forecasted for the Eastern Corn Belt.
Varilek says the market is disregarding the flooding issues and lost acres in the Western Corn Belt and may not have a real handle on losses until much later in the season.
