Grains are mixed early with a light pop in wheat futures. Cattle are trying to recover after a tough week.
Darin Newsom, with Barchart, says wheat is seeing short covering as funds are growing bored with that market and following European market strength tied to global production concerns.
Corn is getting some support from higher wheat but he says continues to struggle under the weight of a big crop and it’s follow the normal seasonal pattern.
Newsom says technically its critical December corn closes back above the $4 mark on Friday or it could open the door to more downside pressure.
Soybeans are mixed seeing bull spreading with export business finally announced and confirmed to China and unknown destinations this morning.
Newsom says he’s watching money flow in the grain markets and thinks the funds could start covering their short positions if the stock market continues to show weakness on long liquidation.
Cattle futures see a short covering pop as that market is oversold on fund long liquidation much of the week also tied to long liquidation in the stock market.
He says the key is whether or not it can hold into the close and especially whether it can hold Monday’s lows.
