Grain and livestock futures are mixed early Tuesday.
Kent Beadle, Paradigm Futures says corn continues to move higher on fund buying and tighter corn stocks from USDA’s Quarterly Stocks Report indicating strong demand.
Private exporters reported a sale of 7.7 million bushels of corn to unknown destinations this morning which continues to support the uptick in usage.
December corn futures topped out Monday hitting chart resistance in the December contract around the $4.25 to $4.27 area and that is where farmer selling also picked up.
However, Beadle thinks corn could eventually take out that chart resistance and keep moving above those levels as the yields are more variable on corn than expected.
Wheat futures are following corn but also adding weather premium with continued dryness in the U.S. Southern Plains and Black Sea regions.
Soybeans are trying to follow corn and wheat but continue to struggle with harvest pressure and farmer selling, plus rain chances in the extended forecast for Brazil.
However, export demand has been picking up with the weekly sales pace nearly in line with last year and another 4.4 million bushels of soybeans sold to unknown destinations announced this morning.
Beadle says cattle futures are mostly lower as they are overbought and due for a correction and higher corn is weighing on feeders.
However, he thinks the cattle market will be well supported by last week’s strong cash and movement, plus ideas of steady to higher trade again this week.
Lean hog futures are mostly higher showing their resilience especially in the face of the port strike on the East and Gulf Coasts.
