Grains and cattle are mixed early Wednesday.
Allison Thompson with The Money Farm says corn and wheat are both higher pulling each other along and seeing fund short covering, the lower dollar and improved demand support the markets.
The hotter drier forecast for the Corn Belt and Northern Plains has driven the relief rally to start the week in the grain complex.
December corn got above the 20 day moving average for a brief time on Tuesday and failed but is making another attempt on Wednesday morning.
In the wheat complex, spring wheat has been the leader but set back on Tuesday with the Wheat Quality Tour moving through North Dakota finding strong yields.
Day One resulted in a record 52.5 bushel per acre yield and Thompson says that doesn’t surprise her.
She says Hard Red Spring wheat is trading at a premium to Hard Red Winter wheat as the newly harvested crop is of lower quality with the higher yields and so millers are looking for higher protein in the spring wheat crop.
However, after a 40 cent improvement in soybean futures the market is seeing light consolidation and hedge pressure with farmer selling.
November soybeans also struggled with the 20 day moving average on the charts as resistance and are trading under that level on Wednesday.
Live cattle extend gains with the futures discount to cash, while feeders are seeing some light profit taking with the higher corn market.
