Grain and livestock futures are mostly higher on Tuesday.
DuWayne Bosse, Bolt Marketing, says soybeans have been up for three days putting in weather premium on the hot dry conditions in the Midwest and a 1% drop in crop ratings.
However, there are some forecasted rains for areas of Illinois and soybeans are running into chart resistance on the November contract around the 20 day moving average, so Bosse is unsure how much higher prices can run.
Corn made new contract lows again overnight but is slightly higher following wheat, and seeing some end of month and end of quarter short covering.
Corn also saw a 2% drop in crop ratings on the USDA Crop Progress report which was above expectations.
Additionally, there was a flash sale announced this morning with Mexico buying 5 million bushels of U.S. corn for 2024-25.
Wheat is also seeing some end of quarter short covering with the funds short and taking some profits, plus the dollar index is weaker.
Live and feeder cattle futures scored an outside day higher Monday which was a surprise to Bosse considering the slightly bearish Cattle on Feed report placements number.
However, the markets are seeing follow through buying today on that technical strength.
Futures are also at a discount to the cash which was at $185.54 last week, down $3.60 on the 5 Area Weighted Average.
