Grains are lower early Monday with livestock mixed.
Cattle are trading two-sided early as Brad Kooima of Kooima Kooima Varilek says the market is digesting the USDA Cattle on Feed Report.
The on feed number was in line with expectations at 100% with marketings at 102%, while placements were 2% above expectations at 98% but still below a year ago.
Kooima says the live cattle futures are absorbing that number fairly well since the market was bracing itself for a surprise.
Last year the October report saw a shocking increase in placements which crashed the cattle market.
This report also breaks out the steer versus heifer placements and heifers were down only .9% which indicates to him that retention is still not taking place in the herd.
Fundamentally, boxed beef value were higher coming into the session and cash trade was higher last week which is supportive.
Cash trade was mostly $190 last week in both the North and South, up $2 and looks to be higher again this week he says.
Plus, McDonald’s has put Quarter Pounders back on the menu saying the beef is free of E.coli.
Lean hog futures are trading two-sided after a higher week last week with contra seasonal cash strength, but into chart resistance.
Grains are setting back on technical selling after poor closes on Friday, better rains in South America which have helped Brazil farmers catch up on soybean planting and crude oil is down sharply.
However, Kooima says he’s hopeful the lows are in the corn market with strong demand.
Monday morning private exporters reported flash sales of 4.9 mb of corn to Japan and 4.7 mb to unknown destinations, both for 2024-25.
However, with the recent improved weather in South America and large carryout he thinks soybeans may be more suseptible to downside pressure.
