A lower day in ag markets Thursday, except for cattle.
Scott Varilek, Kooima Kooima Varilek, says cattle futures started lower with the drop in boxed beef values yesterday.
However, the market reversed and made new highs for the move into the close pushed by higher cash trade.
Southern live trade is at $184 to $185.50, but mostly $185, which is $2 higher than last week. Northern trade has been lighter, but some $187 in western Nebraska developing right after the close as well as $294 dressed, $4 higher.
He says the negative talk of packer kill cuts and lower slaughter this week is actually positive according to Varilek.
“I think its more a function of the cattle numbers just not being there,” he explains.
Technically the cattle futures look strong with December live cattle breaking above several layers of chart resistance.
“I think we project to $189.50 to $190 on the December charts,” he says.
Lean hog futures saw some profit taking end of month and quarter and ahead of the USDA Quarterly Hogs and Pigs Report.
Grain markets all ended lower as the end of quarter short covering and fund profit taking that produced this rally was overcome by an increase in farmer selling according to Varilek.
“A lot of cash prices have now hit $4 on corn and $10 on soybeans and so that may have finally triggered farmers to sell some inventory,” he says.
However, technically many of the markets also ran into another layer of chart resistance.
Soybeans made new highs for the move early in the session and then hit resistance and faded.
