Grains end mixed Friday with livestock higher.
Don Roose, U.S. Commodities says corn and wheat end lower with soybeans higher Friday evening up positions ahead of the weekend and some spread unwinding between corn and soybeans.
The funds have been exiting their long position in the corn and saw more risk off selling on Friday in part due to tariff and economic concerns.
“Remember, they were up at a huge long position in corn up at the top when we were $5.21 1/2 on the July corn, and we sank back. They’ve cut their long position down into the mid 200 ,000, but I think that’ll continue to liquidate if things don’t improve on the demand side,” he says.
Meanwhile, the managed money funds are still short in wheat and soybeans.
Roose says the grain markets have been volatile chasing headlines on tariffs and watching the weather.
Safras and Mercado did release a lower production estimate for Brazil’s soybean crop at 172.45 MMT, which was 2.43 MMT below their last estimate and was also slightly bullish.
Roose thinks the grain markets are range bound until the USDA reports at the end of the month with higher corn and lower soybean acreage already being priced into the markets.
Grain traders are also awaiting the show down on possible tariffs on Canada and Mexico and reciprocal tariffs on April 2.
Live and feeder cattle ended higher with he help of sharply higher cash but the futures did not make new highs and negate Thursday key reversals.
Roose says this may be a technical sign of a top and he’ll be watching next week’s trade closely because if the markets don’t take out those highs that could turn the trend.
Cash trade developed in the North at $325, up $9 from last week’s weighted average in Nebraska with live sale prices $205 to $206.
A light trade developed in parts of Kansas at $203, $6 higher than the prior week’s weighted averages.
Lean hogs end mostly higher on short covering but Roose says the market continues to face tariff headwinds with the large dependence on exports.
