Corn and soybeans lower early Tuesday, with wheat trying to bounce. Cattle are higher, but hogs lower.
John Heinberg, Total Farm Marketing, says corn and soybeans are seeing early pressure Tuesday from planting progress.
USDA reported 24% of the corn and 18% of the soybeans are planted nationally, both ahead of average.
Soybeans are actually 6% ahead which is why soybeans may be seeing more pressure but Heinberg says with more producers in states like Illinois planting soybeans now ahead of corn that number may be a little skewed.
The weather forecast for next week looks fairly open and so that is also a bit bearish.
Plus, Heinberg says there is pressure from end of the month profit taking and first notice day positioning as May contracts will go into delivery on Wednesday.
Soybean oil made new contract highs yesterday on strong export demand and has been holding up the old crop soybeans.
However, both soybean oil and soybeans have run into chart resistance and are due for a correction.
Heinberg was encouraged by flash sales of 4.7 million bu. of corn to Spain and 4.0 million bu. of soybeans to unknown destinations during the 2024/2025 marketing year.
Wheat tried to bounce early after making new contract lows in KC and CH yesterday on beneficial rains in dry areas of wheat country.
However, the winter wheat rating was better than expected at 49%, up 4% from last week.
Heinberg says the COVID lows are within sight and so he is hopeful the wheat market doesn’t feel the need to test those areas.
Both live and feeder cattle futures made new contract highs again.
Heinberg says the market has been pushed by tight supplies and record cash which came in at $216.32 yesterday on the 5-area weighted average.
However, Choice boxed beef was also up $6.29 yesterday with strong demand and lighter slaughter of only 104,000 head Monday.
Feeder cattle futures are also into new highs with a push from a $3.83 jump in the cash index and could be poised to take out $300.
Lean hog futures made new highs for the move Monday and are seeing some end of the month profit taking as contracts ran into resistance.
The Lean Hog Index has been working higher and was up another $.64 yesterday to $88.18 but the National Direct Market hog values dropped $1.25 on the afternoon report.
He says cash needs to keep appreciating for the futures market to continue to advance as it currently holds a premium.
