Grains are mixed early Friday, with pressure in the livestock.
Scott Varilek with Kooima Kooima Varilek says cattle futures are under pressure with triple digit losses early in both live and feeder cattle futures.
The market is reacting negatively to the Choice boxes dropping over $6 yesterday.
While there has only been light cash, it has been at mostly $188 in the North, which is down from last week.
Thursday afternoon there was also some light dressed trade in Nebraska at $294, down $3 from last week’s weighted average.
Feb live cattle futures have held support at the 100 day though at $184.85 and Varilek is also watching this week’s low at $185.10 on the charts.
These technical areas need to hold for funds or managed money to defend their long position in the market.
Varilek says while slaughter is running 3% lower than last year total beef production is nearly the same due to the higher carcass weights.
Lean hog futures are following cattle and seeing pressure from lower cutouts.
The pork composite value dropped $4.19 to $97.96, mainly due to a $17.05 decline in belly prices.
Yet, support is still coming from the contra seasonal rise in the Lean Hog Index which now stands at $90.61, up $.37.
Nearby futures remain at a discount to that index.
Grains are mixed ahead of the WASDE and despite more flash corn and soybean export sales this morning.
Private exporters reported 3.9 million bushels or 107,000 metric tons of soybeans for to China, 4.85 mb/132,000 mt of soybeans to unknown destinations and 7.9 mb/200,480 mt of corn to unknown. All for the 2024-25 marketing year.
However, soybeans also may be seeing some profit taking and farmer selling after the 23 cent rally Thursday, plus some spreading between corn and beans.
