Grain and livestock futures are mostly higher early Wednesday.
Kent Beadle, Paradigm Futures, says grains are extending gains from Tuesday on technical and fund buying.
However, the corn market is still digesting the bullish USDA report data for corn with a 200 million bu. cut in ending stocks, but even wheat got a friendly 20 million bu. cut. in carryover.
He says March corn is right up into chart resistance at current levels including the Oct. 2 high at $4.52 1/4.and the 200 day moving average around $4.51 1/2..
Beadle thinks corn has enough bullish fodder to close above these resistance levels.
“It just may not be today,” he says.
Soybeans are seeing spillover support from higher corn and wheat and after USDA left ending stocks at 470 million bu.
January soybeans have run into chart resistance around the $10 mark but March is trading above that level.
Beadle expects soybeans to trade right around these marks until the record South American crop is confirmed and ahead of possible tariffs after January 20.
He says, “There are areas of South America that are dry on a root zone map and so the yield is still not made on soybeans and won’t be until late December and January.”
Cattle futures opened lower then quickly saw buying interest with some steady/higher cash at $191 in the South yesterday.
However, live cattle are back up into chart resistance right at the November highs and February continues to have a tough time breaking the $190 level.
Hogs rebound after a lower day yesterday which saw hedge selling pressure by producers, but funds continue to buy on the breaks.
