Corn and soybean markets are higher early, with lower wheat and livestock.
Chuck Shelby, Risk Management Commodities, says corn and soybeans are rebounding Thursday after running into chart resistance on Wednesday and seeing some profit taking.
He says those market rebounded adding back South America weather premium and still hopeful about continued buying and a possible new trade deal with China.
That hope seems to be overriding any concerns on about possible tariffs of 10% to 25% on China, Mexico, Canada or the EU.
Shelby thinks corn and soybeans are poised to not only close above chart resistance areas but keep rallying as funds are adding to their length in both markets.
Wheat futures are trying to follow the strength in corn and soybeans but are being limited by the strong U.S. dollar index.
Shelby says some of the concerns about winter kill that surfaced earlier this week have been traded.
Live and feeder cattle futures hit all-time highs yesterday and are seeing some early profit taking.
Feeder cattle priced in talk Wednesday that the border was not opening to Mexican feeder cattle imports.
APHIS confirmed that on Thursday explaining that the border would be closed indefinitely due to concerns about New World Screwworm.
Shelby says a correction would be healthy in cattle but funds are long in the market and are likely to defend that position with the bullish fundamentals.
Lean hog futures are following cattle lower but are also showing some concern about the possibility of tariffs on their largest export customer, Mexico.
