Cattle start higher on Wednesday with help from strong cash and the rally in the stock market due tied to the CPI data says Scott Varilek, Kooima Kooima Varilek.
However, it’s been a tug of war in the cattle on tight numbers and cash verses bird flu news.
Hogs try to follow cattle, but upside has been limited with the sliding Lean Hog Index. Plus, Varilek says the devaluation of the Mexican peso since the recent presidential election has made pork 20% to 30% higher which is a concern for demand.
Corn and soybeans rally early despite the sharply lower wheat market as the extended weather forecast is supportive.
Soybeans were helped by the flash sale of 3.9 million bushels of old crop soybeans to China. That is the third in five days.
However, the grains are correcting and positioning ahead of USDA reports.
