Grains and cattle are mixed early Wednesday, with hogs lower.
Vince Boddicker, Farmers Trading Company, says soybeans had a nice reversal off lows on Tuesday and continue to be resilient with the tailwind of lower acres and production and with a push from the bean oil market.
Soybeans had a chart breakout after the USDA Report but what will it take to get to $11?
Boddicker thinks more constructive developments on trade with China are part of the equation but so is the push from soybean oil.
Bean oil has rallied with the possibility of more favorable 45Z policy contained in the House budget reconciliation bill.
July corn made new lows for the move Tuesday then bounced but is corn done going down?
Boddicker says old crop corn has seen pressure from the prospects for a bigger crop for 2025-26 and no weather threat.
However, the bigger corn corp in Brazil has also been pressuring corn, in addition to the lower wheat market.
Seasonally, Boddicker says the corn market usually finds a low in this time frame.
Wheat futures scored new contract lows in all three classes on Tuesday and then reversed only to retest those areas Wednesday.
The market has been pressured by recent rains and improving winter wheat conditions, plus fast spring wheat planting.
However, Boddicker thinks the market may be trying to bottom and has one eye on the Wheat Quality Council Tour results to see if growing disease pressure has a yield impact.
Live cattle futures have been 2-sided Wednesday awaiting cash trade development, with some pressure on feeder cattle in what looks like profit taking.
Boddicker says the cattle market is overbought and due for a correction but he says cash is still the driving force for the market and there has been no demand slow down even with Choice boxed beef up at $350.
Meanwhile, lean hogs are lower on follow through selling after the June contract failed at $100 yesterday.
Boddicker says the deep deferred contracts have reached new contract highs though on disease concerns.
