Grain and cattle markets see early strength, with hogs setting back.
Scott Varilek, Kooima Kooima Varilek, says cattle futures are extending gains after a higher week in the futures and with higher cash trade.
Cash sales on fed cattle continued all the way into the weekend.
Northern trade volume was at $195 and $307 dressed which was up $2, but Varilek says there were even some $197 trades to a major packer on Saturday and a regional bought some cattle at $197.50.
Southern business was mostly $192 to some $193, with is $1 better than last week.
Boxed beef was also higher on Friday which added some fuel to the fire on the open Monday.
Will the funds liquidate or take some profits end of year?
Varilek says, “Cash is king and so I think the fundamentals will continue to win out and keep fund traders interested in cattle.”
Feeders are also supported by strong cash in the country.
Lean hog futures set back on some end of year profit taking and fund liquidation.
However, grain markets are all higher.
Corn has had a chart breakout to new highs for the move on strong demand and dryness in Argentina, plus funds are long and adding to that position.
Soybean and soybean meal futures are also higher on concerns about weather forecasts in Argentina and Southern Brazil, but the funds are short and also covering some of those positions end of year.
However, both corn and soybeans are getting into chart resistance areas they need to take out to keep moving higher.
