Grain and livestock futures all start lower with the risk off selling in U.S. and global equity markets spilling over.
However, corn and soybeans came off lows early and tried to push back higher.
Brad Kooima of Kooima Kooima Varilek says both cattle and hogs are down with ideas of slower consumer demand for protein on increasing recessionary fears.
The cattle futures market selloff started late last week and feeders did technical damage.
The October live cattle gapped lower Monday morning on the open below the 100 day moving average and then tried to fill the chart gap and stabilize.
However, Kooima says the long speculators are liquidating in cattle as evidenced in the bigger volume and a huge drop in open interest.
Cash cattle trade was steady to start and then mostly $2 lower to end last week on light volume, so what will the plunge in futures mean for cash cattle trade this week?
Hog futures are lower in sympathy with cattle but there are also concerns about demand as the market is reliant on global demand with nearly a quarter of the production going to export markets.
Grains start lower with risk off selling but corn is trying to claw back and is above $4 on the December, while soybeans are off their lows and also trying to get back in the green.
