Grain and hog futures are higher early in the session with cattle lower.
Scott Varilek, Kooima Kooima Varilek, says cattle are seeing some selling pressure again ahead of a three day weekend but are holding chart support.
He thinks improving cash bids could pull the market back up.
Cash has been light this week in the South at $202 to $203, down $3 to $4 from last week’s weight averages.
Northern trade has been even lighter at $320- $322 but bids have been improving as packers have been having a tough time lining up inventory despite cutting kills to prop up margins.
Varilek says if these chart areas hold he’s confident the market can move back to retest the record highs especially as the best demand period is still ahead....grilling season.
Weather is also a factor with cold and snow in cattle areas of the South and that could start trimming weights.
Lean hog futures are challenging chart resistance at contract high areas that triggered profit taking yesterday.
Fundamentally the market has been pushed by strong cash and cutouts and shook off tariff talk.
Grains are higher led by wheat with reciprocal tariffs delayed until April 1 but the wheat market is also trading Black Sea war headlines, a lower dollar and cold weather in winter wheat areas.
Corn is following wheat but corn bounced off the 20 day moving average Thursday and funds are back in buying he says.
Crop conditions have deteriorated in Argentina and rain is missing the Southern portion of the country which is supportive for row crops.
Soybeans held chart support and bounced yesterday and are seeing some follow through buying, but the Argentina weather and the higher wheat market is helping.
