Grains end higher on Thursday with live cattle higher, feeders and hogs lower.
DuWayne Bosse, Bolt Marketing, says grain markets rebounded Thursday on technical buying after holding and bouncing off support areas.
May soybeans bounced off the $10 market and products also held key support.
Grains got some help from strong export sales on the weekly report with corn at 38.1 million bu., soybeans at 27.6 million bu. and wheat at 28.8 million bu.
“I think the lower dollar is certainly helping to stimulate some demand, especially for wheat and China was even in buying more old crop soybeans and not canceling,” he says.
Light support was also due to IKAR once again lowering Russia’s wheat export pace, this time dropping it 1.5 MMT to 41 MMT.
Tariff talk was a bit more muted in regards to ag products as well on Thursday allowing the grain markets to correct their oversold status from Wednesday.
“The Mexican president is even talking about having a meeting with President Trump which was positive,” he says.
Also supportive of the soybean market and especially meal was a 1 MMT drop in the Argentina soybean estimate from the Rosario Grain Exchange and they lowered corn production 1.5 MMT.
Conab raised Brazilian production on soybeans to 167.3 MMT but is still well below many of the private estimates, corn was at 122.7 MMT, also up 750,000 MT.
Bosse thinks the grain markets could chop in a range until the end of the month waiting for the USDA Prospective Plantings Report and possible tariffs on April 2.
Live cattle futures made new highs for the move, once again shaking off the lower stock market with hopes for higher cash.
Feeder cattle made all-times highs in all months then reversed, scoring a reversal.
Bosse says this has him concerned this is topping action because it was done in the last hour of trade on big volume, and was likely funds taking profits.
However, a lower day on Friday according to Bosse and the inability of the market to not take out this week’s highs, will be needed for confirmation.
Lean hog futures ended lower with a marketing year low in exports on Thursday morning and after hitting chart resistance again.
