Another risk off day on recession fears spilling into the commodities. However, cattle have been consolidating and cash trade looks a little weaker, so is this action confirming a blow off top? Hogs aren’t seeing any follow through buying after yesterday’s reversal and corn and beans are lower so how much downside risk is there in those markets? Scott Varilek, Kooima Kooima Varilek has details.
Another Risk Off Day Causes Selling in Commodities: Are Cattle Confirming a Blow Off Top and What’s the Downside Risk in Grains?
Another risk off day in commodities. Cattle consolidate with weaker cash, while hogs aren’t seeing follow through buying. Row crops are lower but how much downside risk is there? Scott Varilek, Kooima Kooima Varilek.
April 20, 2023 09:11 AM
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Joe Kooima of Kooima Kooima Varilek says the gap lower opening in cattle futures Monday in response to the border reopening to Mexican imports was volatile. They anticipate more to come to price in the news, even after a $25 to $30 break in the futures recently.
Brian Grete with Commstock Investments says, “We’ve seen China come in and be a fairly active buyer over the past several weeks here of new crop U.S. soybeans. There was more talk of that on Friday. And so that gave us some price support.”
Scott Varilek with Kooima Kooima Varilek says the live cattle futures made new lows for the move Thursday before finding support and putting in key reversals.
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