Cattle are the only market higher early Monday, which is a little surprising with the bearish placements number in the Cattle on Feed report at 106%, which was above expectations.
Brad Kooima, Kooima Kooima Varilek, says the placements number is still 2% below the five year average and so he thinks that number is not as bearish as expected which is allowing the cattle market to rally.
Kooima also says many of the long speculators that wanted out of the cattle market have liquidated which should allow the futures to stabilize after a $15 break in the fed cattle market.
He also thinks the cash cattle market may bottom this week as the discount of the futures to the cash has been narrowed.
Lean hog futures are consolidating after a chart breakout and higher weekly close last week.
Meanwhile, grains are all lower and corn makes new contract lows with a lower but still record yield still projected by Pro Farmer.
Soybeans are holding above the contract low areas on the charts despite the record yields and production Pro Farmer projected.
