Grain and livestock futures are mostly higher Thursday morning.
DuWayne Bosse of Bolt Marketing says corn and soybeans are getting pushed by strong weekly exports and more flash sales.
Weekly exports on corn totalled 141.6 million bushels the largest total since May of 2021 while soybean exports were at 79.1 million and wheat at 19.6 million.
USDA also announced more flash sales of corn including 9 million bushels to Japan and 6.5 million to unknown, with 7.3 million of soybeans to unknown destinations as well.
Bosse says basis has been strong for both corn and soybeans and the forward spreads have also been indicating underlying demand.
Corn is above both the 50 and 100 day moving averages and November soybeans are above $10 so charts are looking attractive for funds as well.
Bosse thinks the rally in soybeans has also been tied to option expiration for the November contract with the $10 strike price as a real magnet for the trade.
So how long will the demand and the grain rally last, especially with South America getting rain and more in the 10 day forecast?
Bosse is concerned some of the export business is routine and front loaded before the election and possible tariffs so he is concerned about sales drying up after the eelction.
The wheat market has been lagging the row crops with rain chances in U.S. wheat areas and continued export competition from Russia, plus the recent strength of the U.S. dollar index.
Cattle futures are recovering a day after the McDonald’s E.coli story pressed the market lower.
However, if cash trade continues steady or grinds higher again for a seventh week can cattle take out chart resistance and keep moving higher?
Bosse says the $190 area on the December live cattle chart will be tough resistance to take out.
Lean hog futues continue to look strong on fund buying and lower than forecasted slaughter.
