Grain and hog markets closed higher on Thursday with cattle lower.
Allison Thompson of The Money Farm says grains markets extended gains for a second day with talk of ag exemptions and then another 30 day extension on tariffs on Mexico and Canada.
Grain markets were oversold after several days of lower closes on fear of tariffs and counter measures from major trading partners.
Is it just a dead cat bounce?
Thompson says she thinks a recovery is in store but all of the markets have seen technical damage with the recent collapse and need to close back above 50 and 100 day moving averages to confirm the rally can continue.
Weekly exports were decent with corn at 35.8 million bu., soybeans at 13 million bu. and wheat at 12.4 million bu. so that was also supportive.
Hog markets also rallied on the news with Mexico the top export market for U.S. pork and fear of the product being on the retaliation list.
Cattle futures set back as the tariffs actually prevented imports from Mexico and Canada competing in the U.S. market.
However, the melt down in the stock market and the steady to $2 lower cash trade in the South at $195-$197, also weighed on the cattle futures.
