Cattle are mixed early Thursday with hogs setting back.
Grains are also mixed with row crops higher and wheat lower.
Scott Varilek of Kooima Kooima Varilek says live cattle futures have seen forward spreading the last two sessions with nearby contracts higher and deferreds lower on the short side of the spread.
Cash cattle trade has been steady so far in the South at $188 and the August live cattle futures are trying to converge so that has led to some bull spreading on the board.
Very little cash cattle trade has been reported in the North but Varilek says it feels like another steady week in the works.
He says packers have been slowing chain speeds to prop up boxed beef values which on the Choice are still above $312 with another surge in buying expected prior to the Labor Day holiday.
Varilek was also impressed the board held together on Wednesday in light on the melt down in the stock market.
Meanwhile, feeder cattle futures are under pressure with higher corn and a cooling cash index.
Lean hog futures are consolidating early in the session. Despite strong weekly exports at 30,200 metric tons, the market has had a nice rally that was pushed by higher cash and cutouts, so its taking a break and may even be seeing a bit of hedge pressure.
Corn and soybeans are higher on fund short covering and the addition of some weather premium as the two week forecast looks hot and dry. However, the forecast after that has some rainfall.
Plus demand has started to pick up at these lower prices with a flash sale of nearly 10 mb of new crop soybeans.
