Grains leaning lower with USDA Report hangover. Allison Thompson, The Money Farm, says the reality is sinking in that regardless of lower corn acres the ending stocks could still be above 2.0 billion bushels.
Plus, she says the market is questioning where the 6.4 million acre loss to principal crops came from and she is anticipating total acres will be adjusted upward in the June report.
The wheat market is seeing the most severe losses, pulling down corn and wheat. Winter wheat areas have seen decent precip with more in the extended forecast. Plus, the first USDA crop condition report is likely to show a much better wheat crop than a year ago.
Corn and soybean meal may also be seeing some reaction to the HPAI news on ideas of lower feed demand.
Live and feeder cattle futures started mostly lower with news over the holiday weekend that Highly Pathogenic Avian Influenza is continuing to spread in the dairy herd, now confirmed in Idaho and Michigan and there is concern it could be spreading cow to cow. Plus, cash trade developed $2-$3 lower. However, feeders at least have bounced off chart support and are off lows even a little higher in some contracts.
Hogs opened lower in reaction to the Hogs and Pigs Report and some of the bearish numbers regarding productivity. However, the market quickly bounced off the HPAI news and as hog futures are on the long side of spreads with cattle.
