Cattle continue to slide, while hogs recover. Grains are mostly lower except some slight gains in corn.
Scott Varilek, Kooima Kooima Varilek, says cattle futures continue to digest new developments on Bovine Influenza A with new cases in North Carolina, 17 states restricting movement of cattle and news of a human death in England.
Cash trade looks softer this week as a result, plus weights have been climbing well over a year ago and boxed beef values fell on Wednesday.
Feeder cattle make new lows for the move, but where will that market and live cattle futures find support?
Hogs score a bearish key reversal yesterday but are recovering today on the heels of strong weekly exports of 47,400 metric tons and the cash index was up 90 cents. However, negotiated cash and cutouts were lower.
Corn holds slight gains despite a marketing year low in weekly exports as the Rosario Grain Exchange lowers Argentina corn production by 6.5 mmt and Conab lowers Brazil’s crop by nearly 2 mmt. Traders are also expecting lower ending stocks in the USDA Report.
Soybeans make new lows for the move headed into report with ideas of lower exports and higher ending stocks, plus Conab only lowered the crop slightly to 146.52 mmt.
Favorable planting weather in the western Midwest may also serve as a headwind.
