Grains and hogs are higher early Tuesday, with cattle mixed.
Grain futures are seeing corrective buying, bouncing off technical support says Kent Beadle with Paradigm Futures.
He says stability in the crude oil market is also helping after the implosion Monday spilled over into the grains and caused risk off selling, especially in soybean oil.
Farmers continue to tuck away the corn and soybean crop and harvest is now at 81% on corn and 89% on soybeans, one of the fastests in recent history.
Corn and soybeans were pressured Monday as rains have fallen over key areas of Brazil and planting pace has picked up which will continue to be a headwind for especially the soybean market.
However, Beadle says there is strong underlying demand for all of the grains at these price levels and so any pull back should be met by good end user buying.
However, Tuesday was the first day there were no flash export sales, after a string of 9 days of buying in corn.
Beadle says wheat futures are getting support from the forecast for the HRW wheat areas which shows less general coverage and only eastern Kansas receiving substantial moisture.
Plus the first winter wheat rating of the season showed 38% good to excellent wheat rating which is well below a year ago and historically low.
Cattle are mixed to lower consolidating after December live cattle made fresh highs for the move.
Cash trade was higher for a 7th week with the 5-Area Weighted Average cash price for steers, up $2.44 from the previoius week on big negotiated totals of over 98,000 head.
Beadle says as long as cash can stay steady to firm cattle futures should be able to get through chart resistance.
Lean hog futures make more contract highs Tuesday pushed by technical buying and contra seasonal strength in cash and cutout.
