Livestock and grain futures are all in the green early Monday.
Cattle futures make new highs for the move early, pushed by higher cash trade says Brad Kooima of Kooima Kooima Varilek.
He says cash trade in the North on live sales ranged from $184 to $185 late and $290 to $292.50 dressed, up $2 to $4 from last week’s weighted averages.
In the South, live trade on cattle was $182 to mostly $183, which was $2 to $3 higher than last week.
The USDA’s Cattle of Feed report was largely neutral with on feed numbers at 100.6%, placements at 98.6% and marketings at 96.4%.
Technically the live cattle had a chart breakout last week with the December contract getting above the downtrend line at $179.50.
Kooima says the next technical objective will be closing December above $183.50 which is the 200 day moving average.
He says that will be the key signal for the funds to keep buying.
Lean hog futures are also making near term highs with continued fund buying after a higher weekly close last week and China economic news.
Grains are seeing strong gains led by soybeans on weather concerns in South America as Brazil is still looking dry to start their rainy season.
China also lowered their interest rates overnight as part of a bigger stimulus package.
Plus, exporters reported a 6 million bushel sale of soybeans to unknown destinations.
As a result, soybeans are seeing a chart breakout to new highs for the move and while
November is above the 50-day moving average it has not been able to close above this level.
Kooima says for him the key in soybeans is closing above $10.40 on the charts, plus there is a gap area around $10.45 that needs to be filled.
He says sustaining prices at or above those levels may be difficult with harvest pressure picking up.
