Livestock are lower early in the session with grains trying to recover.
Cattle start lower on more bird flu news but at least holding chart support.
Scott Varilek, Kooima Kooima Varilek, says the World Health Organization has reported the death of a 59-year-old Mexican man from H5N2 which is a mutated strain of bird flu. “He had Type 2 diabetes and kidney failure, and he has never been around poultry, he’s never been around cows. However, he dies, and the tests come back positive for bird flu,” he said frustrated.
Also, dairy cows infected with avian flu in five U.S. states have died or been slaughtered by farmers because they did not recover, state officials and academics told Reuters.
Regardless, Varilek says this raises a lot of questions and makes people scared. “Because the WHO says its mutated and is a different strain than we have in the United States.” So, the uncertainty has traders back selling and there may even be some hedge pressure from LRP insurance policy writing.
After a lower week last week, cash cattle news has been scarce so far. However, bids in the South this morning are being offered by packers at only $184. Varilek was hopeful for at least steady cash trade this week as asking prices in the North have been steady and packers need some cattle.
Technically, he is watching chart support on the August live cattle at the trendline of$175.00.
Lean hog futures make more new lows for the move and are in danger of retesting contract lows. Funds have continued to be relentless sellers on any strength in the futures although the board is now in line with the cash index.
Grains see a short covering bounce.
“Corn and soybeans have both been down for the last seven days and are oversold and due for a correction,” says Varilek.
He says with adequate moisture recharge in much of the Corn Belt the market seems comfortable the crop is in decent condition, so he believes this is all technical.
However, weekly corn exports were decent and private exporters reported 6.0 million bushels of corn sold to unknown destinations this morning for 2023-24 which is supportive.
