Grain markets are mostly higher early and so are cattle and hogs.
Mike Zuzulo, Global Commodity Analytics, says corn and soybeans rebounded early on South American weather concerns.
Zuzulo says the crop in Argentina and Southern Brazil has been under some heat stress but there are some rains forecasted for the weekend that will be critical and will determine the next move for the markets.
This impacts mostly corn and soybean meal markets.
However, the other key will be if the corn and soybean markets can get through the key technical resistance areas that triggered profit taking Tuesday.
March corn needs to close above the $4.80 area and $4.74 is also the breakout point from the 2024 highs.
March soybeans are also running up into major resistance at the 200 day moving average around $10.80.
Grain markets are also watching the currency markets.
The U.S. dollar index, according to Zuzulo, is at a critical juncture after making new two year highs and is seeing some easing but its direction will have a big impact on the grain markets and other commodities.
He says talk the Trump Administration is preparing to use incremental tariffs of 2% to 5% per month, instead of blanket tariffs at higher rates, is pressuring the dollar and causing the stock market to rally.
There are still inflationary concerns though and that was evident in the CPI data with core inflation up .2% from last month and up 3.2% annualized.
Cattle are back higher with more record cash trade being reported in the country.
There have been some light sales in the North this week up to $205.50 and Kansas at $200 but Zuzulo is hearing even higher cash in the South from his clients.
He says the packers are having to pay up with another Arctic blast set to hit cattle country.
Plus, the WASDE indicated HPAI is driving up the cost of all proteins and so beef prices do not look as expensive relative to other meats which is supporting demand.
