Grain and livestock futures closed mostly higher on Tuesday.
Don Roose, U.S. Commodities, says corn and wheat scored key reversals bouncing off of new contract lows.
He says the market may have dialed in the most bearish news and is ready for a bounce.
It is also end of month and quarter which prompted some short covering by the funds, who are short in all the grain markets.
But is it possible corn and wheat are trying to bottom?
Roose says seasonally wheat tries to forge a low this time of year and for corn it is not uncommon in years of bumper crops for the market to put in an early harvest low.
Despite that Roose says $4 will be tough resistance for corn to break through to extend the rally.
Soybeans were up for a third day adding weather premium with hot dry weather in much of the Corn Belt and again having most of the bearish news priced in.
So, how much higher can soybean prices go?
Roose says $10 will be strong psychological chart resistance for November soybean prices.
Live and feeder cattle futures extended gains on technical buying after scoring an outside day higher on many contracts Monday but tight supplies and the futures discount were also fundamentally supportive.
However, Roose says demand and boxed beef prices have also been strong.
Lean hog futures made 2 1/2 month highs on continued fund buying on seasonals, the futures discount to cash and following global pork prices, including China.
