Cattle and hogs are higher shortly after the open, with grains seeing some pressure.
Scott Varilek, Kooima Kooima Varilek, says cattle futures are making record highs once again in both live and feeder cattle futures.
Cash is also trading at record levels for a fourth week with Northern business ranging from $210 to $212, on Friday morning, up $6 to $8.
Dressed trade in the North ranged from $328 to $330, up $6 to $8.
This is after the South traded earlier in the week at mostly $201-$202, which is steady to $1 higher in some instances.
USDA reported dressed trades in the North on Thursday at $322, up $2.
Support is also coming in the feeders from the higher cash index and the border still being closed to Mexican feeder imports.
Right now consumers have been willing to pay up for beef in the grocery store and that has also pushed the market.
The rally may be reinforced with next week’s USDA Cattle Inventory Report confirming historically low numbers according to Varilek.
Friday USDA will also release the January Cattle on Feed Report with trade guesses at 99.7% on feed, placements at 100 to 101.1% and marketings at 101.2%
Hog futures followed cattle with the continued talk of disease issues and strong exports at 37,700 MT.
So for the hog market has remained calm in the face of possible export tariffs of 25% on Feb. 1 on their largest customer, Mexico.
However, President Trump has softened his stance on Chinese tariffs, which may be helping.
Grain markets set back on profit taking and Argentina lowering its export taxes on grains and a slight improvement in the South American weather forecast as Argentina in the 1-5 day outlook could get from 1" to 2" of rain.
Argentina’s goverment announced starting Monday they will lower the export tax on soybean meal from 31% to 24.5%, soybeans from 33 % to 26%, corn and wheat will go from 12.5% to 9%.
Exports were strong this morning on corn at 65.4 million bu., soybeans at 54.8 million bu. but wheat sales were disappointing at 6.1 million.
