Corn and wheat are higher early Thursday, with soybeans lower. Cattle are back up, with hogs mixed.
Randy Martinson, Martinson Ag, says corn and wheat futures are seeing some technical buying with first notice day and end of month positioning out of the way.
Funds are short in wheat and so he says some of the buying is just short covering.
However, exports were still solid this morning for corn at 40 million bu.
Wheat exports, while better than last week are still a bit slow at 2.6 million bu. old and 8.8 million bu. new.
Soybeans tried to rally early with corn and wheat but are seeing pressure for a 4th day.
The market is watching weather and improving conditions for planting and early crop development, which is weighing on futures.
Traders are also monitoring the China trade news which recently has looked more friendly with the U.S. initiating talks, but the market is awaiting further proof of solid developments and progress.
The U.S. has approached China seeking talks over President Donald Trump’s 145% tariffs, a social media account affiliated with Chinese state media said on Thursday. However, Chinese officials continue to publicly deny any formal negotiations are currently underway.
The Trump administration says they will be announcing trade deals soon and the first could come from Japan or India.
According to Martinson the grain markets could get a good shot in the arm from those deals, but the devil will be in the details.
Cattle futures started higher after some end of month profit taking on Wednesday, then faded.
Light cash trade took place late yesterday afternoon that had Northern dressed deals marked at $340 to mostly $350, $8 higher than last week’s weighted averages. Southern live business was marked at mostly $218, $5 to $6 higher than last week’s weighted averages.
The stock market or S&P is also rallying today which helps to support cattle futures.
Hogs are trading mixed and 2-sided with a show me attitude about the China talks.
