Grain and livestock futures are mostly lower early Thursday.
Vince Boddicker, Farmers Trading Company says grain markets are trading lower for a 4th day as technical selling accelerates and a higher dollar continues to add risk off pressure.
Soybeans took out key support at $10 on the January contract despite export business of 6.5 million bushels on a flash sale to unknown destinations.
However, there had been chatter about large China purchases for the last several days, so the market may have been disappointed.
Soybean oil is trying to bounce with higher palm and crude oil with soybean meal also making new contract lows which isn’t helping the soybean market either.
Boddicker says corn and soybeans had a nice rally last week and then failed at resistance after receiving slightly friendly news in the WASDE.
He says that was a signal for funds who are long in corn to take profits or add to their short positions in soybeans and wheat.
Cattle futures are solidly lower with lower seasonals and boxed beef values weighing on the market.
However, futures are still holding this week’s lows and Boddicker says they remain in a sidways trading pattern.
The market is awaiting larger cash direction as there was some scattered business at $290 dressed in Nebraska yesterday which is $3 lower but not enough volume to set a trend.
Lean hogs are seeing profit taking and hedge pressure after this week’s contract highs.
Boddicker says cash bellies have started to cool off and that is pulling down the cutout value, yet cash trade was up nearly $4 on a negotiated basis yesterday and the Lean Hog Index was up 6 cents.
