Grains open lower and quickly turn mixed, with cattle weak and hogs higher.
DuWayne Bosse, Bolt Marketing, says after a lower opening corn is recovering nicely on fund buying as the CPI data showed higher than expected inflation.
The January Consumper Price Index or CPI rose 0.5% in January 2025, surpassing forecasts of a 0.3% monthly increase. The annual rate came in at 3%, above expectations for a steady reading with December at 2.9%.
Corn also saw some renewed export business this morning with a flash sale of 5.1 million bu. to unknown destinations for the 2024-25 marketing year.
Strength in the corn market is pulling wheat up and soybeans off their lows.
Soybeans are being capped by more favorable weather in South America and hedge pressure as harvest in Brazil continues to advance.
The soybean market is also watching every headline on China and tariff developments he says.
However, the higher corn market and a flash export sale of 4.4 million bu to unknown destinations helped to pull soybeans off early lows.
The wheat market has also seen some recent fund short covering but Bosse thinks there may be some global and U.S. production concerns that are getting some attention.
Cattle trade 2-sided early but continue to see fund liquidation on any strength.
Cash trade yesterday in the South was also lower by $3 at $203 live.
Lean hog futures made a new high close for the move in the April contract yesterday and are seeing follow through buying this morning pushing contracts into fresh highs.
Support continues to come from higher cash and cutouts.
