Grains are drifting Thursday after hitting chart resistance but livestock are strong.
Mark Schultz, NorthStar Commodity, says corn and soybeans are overbought and failed to get above resistance on the charts which is triggering profit taking.
Weekly exports were a bit below expectations Thursday morning at 37.3 million bu. on corn, 43.1 million bu. on soybeans and 10.7 million bu. on wheat.
Even a 12.3 mb sale of soybeans to unknown destinations is failing to excite the market.
South American weather will be the key moving forward and right now the only threat is a dry weather for Argentina but that is in the extended forecast.
Cattle start higher with live cattle making new highs for the move on sharply higher cash.
Cash broke in the North on Wednesday afternoon with prices ranging from $298 to mostly $300 dressed, up $3 from last week’s weighted average.
Schultz says live sale prices in the North ranged from $193 to $195 with some on the grid as high as $199.
Cash in the South has ranged from $191-$193 live.
He is also seeing some unconfirmed reports of another case of New World Screwworm that could extend the restrictions on feeder cattle imports from Mexico.
Lean hog futures saw early spillover support from the rally in cattle, but then saw some profit taking and hedge pressure.
He says the market has been supported by fund buying on the breaks and lower numbers tied to PRRS.
