Corn closed higher Wednesday as soybeans and wheat plunged. Cattle ended mixed trying to consolidate, while hogs made new highs.
Mike Minor, Professional Ag Marketing, says the rally in corn was fueled by fund buying especially after inflation data in the CPI ran hot at .5% for the month and 3.0% annualized.
Additionally the market is still being supported by strong fundamentals including demand and a 5.1 million bu. flash sale of corn to unknown destinations.
Soybeans plunged with both meal and bean oil removing Argentina weather premium due to recent rains and with some hedge pressure as the Brazilian harvest starts to advance.
However, Minor says soybean futures did not do any technical damage to the charts.
Wheat futures were also lower unable to follow corn or get any support from the weaker dollar.
Live cattle ended mixed with feeder cattle higher as the market continues to consolidate after the recent pull back.
Technically the market is holding support and with the futures discount to cash in both fed and feeders Minor is hopeful it will continue to hold.
More light cash trade took place in the South at $202-$203, down $3-$4 from last week’s weighted averages.
Lean hog futures have been the bright spot and scored new highs for the move and new high closes for the move in the most active April contract.
Minor says its an impressive move driven by fund buying.
However, he says its also a function of strong demand which has pushed cash higher and is reflected in the pork cutout which are trading around the $100 mark.
Slaughter numbers continue to run below expectations and may be a function of disease issues.
