Corn, wheat and cattle end higher Thursday, with soybeans and hogs weaker.
Tomm Pfitzenmaier with Summit Commodity Brokerage says corn is being pushed by strong demand from ethanol and exports.
USDA reported another 15.5 million bushels of flash sales Thursday morning and weekly exports of 142 million bushels, the highest in 3 1/2 years.
But how much higher can corn go before U.S. prices becomes unattractive to exporters?
Pfitzenmaier says, “That’s the key isn’t it? I mean it’s getting more expensive for them as the dollar has been quite firm that doesn’t help. China has bought a little bit of corn but they don’t seem inclined to buy much.”
The charts look positive for corn with December above the 50 and 100 day moving averages which may be attracting some fund buying.
However, that contract is getting close to the next layer of chart resistance and the October high of $4.34 which he says may be difficult to get through.
Soybeans also saw strong weekly exports of over 79 million and another 7.3 million bushels of flash sales to unknown.
However the market had a disappointing close running into chart resistance.
Pfitzenmaier says he is concerned that soybean export buying has run its course especially with South America now receiving rains.
Wheat followed corn and got some help from a weaker dollar and decent exports.
However, wheat continues to run into technical resistance.
Cattle futures recovered with higher cash trade at mostly $190 in the South, up $2 and up to $192 in the North.
Pfitzenmaier thinks cash and futures can continue to grind higher taking out the old highs and getting December live cattle above $190.
Lean hog futures made fresh for the move highs then scored a reversal so he thinks that market may be topping.
