Grain and livestock futures ended mostly lower Wednesday, except wheat.
Dave Chatterton, Strategic Farm Marketing, says the agricultural markets saw risk off technical selling.
The sentiment of the grain market in particular is bearish right now due to uncertainty tied to trade and overall policy in the new administration.
Although demand has been strong in corn and soybeans it is not enough to overcome the bearish prospects of a record crop in South America.
Chatterton says the trade believes the export business is front loaded due to tariff and trade war concerns.
So, he thinks soybeans will eventually take out the contract low areas and that could drag down corn.
New contract lows were hit early in the session in Soft Red Winter wheat before the market saw some short covering but he says that market has failed to rally off bullish news.
Russia has announced a higher export tax and lower export quota but yet funds have just continued to sell the wheat market.
Cattle futures consolidated after hitting chart resistance and with lower boxed beef prices.
Funds are record long in cattle and in the hogs and Chatterton is concerned that they may all decide to get out of those positions if the market isn’t continually fed bullish news.
That could mean a large correction in those markets.
