Cattle, corn and soybeans see early pressure, with higher prices in wheat and hogs.
Live and feeder cattle futures are taking a break after new highs for the move were scored on Thursday.
Scott Varilek, Kooima Kooima Varilek, says the cattle market is overbought and futures are running into chart resistance and so traders are taking some profits ahead of the Cattle on Feed Report.
Cash cattle trade has been quiet but light sales have been steady, but the signal of a bottom has brought fund buyers into the futures.
The Northern feeding areas are current but the Southern formula cattle have been fed to higher weights and that has pushed carcass weights for steers 21 pounds over a year ago and heifer weights are 26 pounds higher.
Varilek says open interest in cattle futures has also increased this week as a result of fund buying associated to the Fed lowering interest rates this week 50 basis points and the strong stock market action.
Lean hog futures also had a chart breakout and made new higher for the move Friday morning.
He says it has been pushed by speculative or technical buying but it may also be better than expected demand.
Corn and soybeans are setting back on seasonal harvest pressure and some forecasts for rain in Brazil starting in early October as the dry season starts to break.
That’s despite higher wheat futures and 4.4 million bushels of soybean export business to China.
