Grains are firmer early Wednesday as well as hogs, while cattle are seeing losses.
Kent Beadle with Paradigm Futures says the grain market is getting some support from news a framework has been worked out between the U.S. and China to at least call a truce on tariffs and remove restrictions on rare earth mineral imports.
While this is positive, he says there is no mention of agriculture and so a longer term deal that includes U.S. ag purchases may be a ways off.
Progress on other deals has been noted by the administration, including a framework with India on trade, but again the details are vague and it comes at the same time the Appeals Court has ruled to allow the “Liberation Day” tariffs to remain in effect until a July 31 court hearing.
Corn had a reversal off of new calendar year lows yesterday and is trying to build on that technically on Wednesday as funds also cover shorts. Beadle say though the market may be ready to put some weather premium back in with heat and dryness returning to this morning’s long range forecast.
The grain markets are also quietly positioning ahead of Thursday’s WASDE, which is expected to show only minor changes in the balance sheets. The only exception may be old crop corn ending stocks could be tightened according to Beadle with better export demand.
Cattle futures are setting back early Wednesday with some profit taking as markets await cash trade development.
Some light cash cattle trade was reported at $235 in Texas, on Tuesday afternoon, up $5 from last week, but not enough volume to call a trend and the North was quiet.
Markets are also reacting to news of ICE raids in Nebraska meat plants, although Beadle says it may not have much impact on backing up cattle with such tight numbers.
Glenn Valley Foods in South Omaha had 75 to 80 workers detained, hit by the largest government immigration enforcement operation in the state since 2018.
That set off rumors that meat processing plants and stores elsewhere in Nebraska were being raided.
Lean hog futures are higher and again pushing into new contract highs in deferred contracts.
Beadle says its a combination of higher cash, cutouts, fund buying and disease pressure leading to smaller herd numbers.
