Grain and livestock futures ended mixed on Tuesday.
Vince Boddicker with Farmers Trading Company says grains saw pressure early Tuesday on tariff fears and fund positioning and selling end of month.
He says the corn market was overdue for a correction and saw some profit taking by funds that were long in the corn and those need to liquidate ahead of first notice day on Friday.
Plus, the grain market is gearing up for the USDA Ag Outlook Forum Thursday and Friday.
Early indications are that the agency’s models will show larger corn acreage this spring with less soybean acres and that may have been reflected in Tuesday session with corn ending lower and soybeans slightly higher.
However, corn and soybeans both bounced off support and retracement areas on the charts mid-session and ended well off lows.
May soybeans held the 50-day moving average at $10.37 3/4 and corn has bounced off of the $4.90 to $4.92 level.
Boddicker says hopefully the markets have corrected enough and are going to take a pause awaiting further news.
Wheat ended lower but off lows also bouncing off support areas and Boddicker says may have extracted enough weather premium for the time being.
The wheat market has been lower with warmer weather in the Southern Plains.
He says the agreement being brokered between Russia and Ukraine to end the war has had little effect on the wheat market so far.
Cattle futures extended gains for a third day with higher boxed beef values at noon and ideas the fed cash market may be close to a bottom.
Feeder cattle have been the leaders with strong cash, tight supplies and slow movement on the Southern border with another case of New World Screwworm being reported in Mexican and ideas an import ban will be renewed.
Lean hog futures ended lower following the lower cash index and with tariff fears, plus Boddicker points to China’s slowing pork production.
