Corn and soybeans end lower Friday, with winter wheats seeing a slight pop. Cattle recover, with hogs mixed.
Scott Varilek, Kooima Kooima Varilek, says corn and soybeans fell heading into the weekend on profit taking and technical selling, plus lower crude oil and a higher dollar.
Varilek thinks the corn market looks tired after faling to close the March contract back above $5 and July corn could not take out resistance at $5.20.
He says the threat of higher acreage in the USDA Ag Outlook Forum and by private firms is keeping a lid on the market, while strong demand is providing a floor.
Soybeans have been more range bound supported by higher corn and lower acreage but limited by the large South American crop and harvest pressure.
Cattle recover ahead of neutral Cattle on Feed report.
The on feed numbers came in at 99.3%, placements at 101.7 % and marketings at 101.4 %, so mostly in line with trade expectations.
However, the breakout shows a slight amount of heifer retention.
Cash trade was lower again on Friday at $199 in the South and $199 to $201 live in the North and dressed at $315.
Boxed beef cutouts were also lower despite packer kill cuts to prop up margins.
He says futures are still holding long term support on the charts but he is not comfortable yet that those areas will hold and the funds will defend their long position, especially with the stock market seeing pressure.
Lean hogs were mixed with nearbys under pressure due to the big drop in cutouts, notably pork bellies.
