Grain and livestock markets are all in the green early Wednesday.
DuWayne Bosse of Bolt Marketing says the profit taking in the grain markets seems to be fading as the focus shifts to weather and China trade optimism.
Farmers have been making good planting progress in the Corn Belt this week but the forecast is extremely wet for the end of this week which is causing traders to take note on concerns of some delays.
Excessive rain may also hurt the soft red winter wheat crop in the Southeast Midwest and mid-South.
Bosse says China has agreed to talks if the U.S. shows respect and also appointed a new trade negotiator.
That may be giving the market some hope that a trade deal can eventually be reached.
Plus, the Trump Administration is reportedly trying to persuade the 70 plus countries that they are negotiating with to isolate China and limit economic ties.
He says the market seems to be trading like it is hopeful that other trade deals will be struck, especially was talks continue with the EU and Japan.
Cattle futures are sharply higher with the June live cattle getting back above psychological resistance of $200 and feeder cattle futures negating the recent key reversal.
Strong demand especially heading into the grilling season seems to be driving some of the buying as well as the tariff headlines becoming more muted.
The market is awaiting cash trade and may or may not wait until after the Cattle on Feed Report tomorrow as this is a holiday shortened week.
Bosse says cash ideas are on both sides of steady with little early evidence of a trend.
Lean hog futures are also higher as the market continues to see short covering by the funds but the idea of better grilling season demand may also be supporting the hog market.
