Cattle Rally on Strong Cash & Stock Market: Grains Mixed, Correcting Pre-Report

Cattle rally on strong cash but face a tug of war due to bird flu news says Scott Varilek, Kooima Kooima Varilek. Hogs try to follow but struggle with sliding cash. Row crops higher, wheat lower correcting pre- report.

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.

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Garrett Toay with AgTraderTalk says after the big rally to start the week the grain markets saw some profit taking and corrective selling.
DuWayne Bosse of Bolt Marketing says the wheat market was trying to extend gains early Thursday but may be getting close to pricing the Black Sea export disruptions in.
Oliver Sloup Blue Line Futures, says wheat prices skyrocketed adding risk premium on concerns about the escalating Black Sea war and the disruptions it is causing in the export market. It could have more upside left.
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