Cattle and grain markets see early strength, while hogs set back.
Brad Kooima, Kooima Kooima Varilek, says cattle are working in last week’s higher fed cash cattle trade which came in at $190 to mostly $191 in the South.
The North traded mostly $297 dressed, up $2 and $190 to mostly $192 live. However, there were some cattle bought by a regional in Western Nebraska as high as $194.
He says most of those cattle will be picked up already this week showing how short bought the packers are currently.
However, the futures response has been somewhat disappointing with the discount the futures are holding to that higher cash and with Choice boxed beef values continuing to be strong.
Kooima says the funds are long over 122,000 contracts and they seem apprehensive to extend that position much farther.
Lean hog futures set back early but nearly every break seems to be bought by funds who are record long over 133,000 futures and options contracts.
Kooima says it looks like the top might be in that market but it doesn’t seem to want to break as long as the funds defend their long.
Grains started with strength early on Monday as corn has seen strong technical buying moving above key moving averages.
However, corn and soybeans quickly ran into technical resistance on the charts.
Support has been coming from strong demand and some adjustments are expected on Tuesday’s WASDE, at least for corn.
Grains are seeing some spillover from higher crude oil and a lower dollar and geopolitical concerns in the Middle East.
Plus, China is looking at another stimulus package this week.
