Grain and livestock futures are finally rallying Thursday morning with a risk on tone to the markets.
Grain futures are getting some help from the plunge in the dollar tied to the 3.0% CPI data which was better than expected and showing inflation is cooling.
However, Randy Martinson, Martinson Ag, says grain markets are finally see a short covering bounce and some technical or corrective buying as they are oversold and there is some positioning heading into the USDA Report.
He says the funds have hammered the grains the last few days without a weather threat but futures have finally bounced off key chart support.
“December corn held $4.00, November soybeans $10.65 and Minneapolis wheat $6.00,” he says.
Some of the selling pressure, at least in corn, has been tied to fears about higher production and ending stocks in Friday’s WASDE.
Exports were somewhat disappointing in the weekly report according to Martinson especially with prices at levels not seen since 2020.
He says it was nice to see China make their first new crop soybean purchase of 4.85 million bushels and unlike others he believes there will be more sales with China buying for their reserves.
Cattle futures are also seeing some corrective buying after three down days tied to hedge pressure, a drop in boxed beef values and some lower cash trade.
Light trade occured in Kansas on Tuesday at mostly $188, which is down $2 to $4 from the previous week. The North traded mostly $312 dressed, down $2.
Lean hog futures hit new contract lows on Tuesday and are also seeing short covering and spillover from higher cattle, plus the Lean Hog Index was finally a bit higher.
