Funds Back Selling Grains With Lack of Bullish News: Livestock See Profit Taking Early

Grains down as funds turn back to selling with China demand concerns, weak Brazil bean basis, bearish outside markets. Cattle & hogs see end of month profit taking to start. Randy Martinson, Martinson Ag, has more.

Grains under pressure again as funds turn back to selling after Tuesday’s short covering rally. The market continues to see risk off sentiment with China demand concerns, weak Brazil soybean basis and bearish outside markets as crude oil has fallen back and the dollar has strengthened.

Cattle and hogs see some end of month profit taking to start the day, but funds have been buying hogs on breaks and pushing the market into new highs for the move. Plus, the Lean Hog Index continues to rise. Cattle may be positioning ahead of the Cattle Inventory Report and FOMC meeting. Lower wholesale beef values are also a factor.

Randy Martinson, Martinson Ag, has more.

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November soybeans failed to close above the key $12 level and Naomi Blohm of Total Farm Marketing thinks the market may be running out of runway as Monday was mostly technical buying.
Joe Kooima of Kooima Kooima Varilek says funds continue to pressure the cattle futures and he anticipates that will continue after last week’s lower weekly closes.
Allison Thompson with The Money Farm says the failure was likely position squaring heading into the three day holiday plus markets ran into chart resistance and saw some profit taking.
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