Grain and livestock markets are mixed early.
Scott Varilek, Kooima Kooima Varilek, says cattle are trying to recover after a poor technical close yesterday with the help of strong cash.
He says the cash market for feeders is on fire, and there has been some early business in the fed market at $190 in the South and $295 dressed in the North.
Lean hog futures are consolidating but he says the funds may continue to buy the breaks with talk of PRRS.
Corn is higher, with March breaking above $4.35 resistance with strong demand and ideas of lower ending stocks in next week’s WASDE.
However, he says a close above this level may only result in another 5 cent higher move as the market still doesn’t have the bullish catalyst to support a bigger rally.
Soybeans consolidate after a higher day yesterday with China buying rumors supporting the market.
However, with no confirmation of any business and continued higher estimates for Brazil’s crop, futures are setting back.
