Grains are mostly lower early Wednesday with livestock mostly higher.
Tomm Pfitzenmaier with Summit Commodity Brokerage says grains are all seeing pressure with the continued strength in the dollar especially compared to world currencies like the weaker Real.
He says wheat is also starting to look tired after pricing in Black Sea war premium and running into chart resistance.
Soybeans are fading flash export sales to China and unknown totalling 15.7 million bu. and continue to slide with sharply lower bean oil, the big Brazil crop and their deal with China.
China and Brazil signed an export deal today that signals China’s move to make the U.S. only a secondary supplier.
Weather is also favorable for the Brazil crop with more rain in the forecast and growing crop estimates.
Argentina is dry but there is some rain in the forecast for the weekend.
Pftizenmaier says they got the crops planted so fast they are nearly 50% ahead of last year and that is favorable for a good start to the corn and soybean crop.
Corn is also seeing spillover pressure from lower soybeans and the higher dollar, but isn’t breaking hard due to strong demand.
He says many farmers are seeing positive cash basis levels and the bull spreads are working which indicate end user demand but are also a function of farmers not willing to sell grain at these prices.
Cattle futures saw some follow through buying after the strong technical close Tuesday but have traded two-sided with some positioning ahead of the Cattle on Feed report and awaiting cash direction.
Hogs are also trying to recover after the lower day Tuesday but he thinks the top is likely been forged in that market.
