Cattle seeing a bounce as hedge pressure is starting to fade but the markets continue to trade cautiously. Hogs can’t sustain a rally with bigger numbers. Grains fail to see any follow through after the reversals yesterday, how much lower will corn go and should livestock producers by buying feed? Scott Varilek of Kooma Kooima Varilek has details.
Cattle Bounce as Hedge Pressure Subsides, Hogs Can’t Sustain Rally: No Follow Through Buying in Grains After Reversals
Cattle see a bounce as hedge pressure fades. Hogs can’t sustain a rally w/big numbers. Grains fail to see follow through after the reversals with poor corn exports and risk off. Scott Varilek, Kooima Kooima Varilek.
May 04, 2023 11:07 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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