Grains are mixed early with wheat putting in weather premium. Even though winter wheat ratings are well above last year, Kent Beadle with Paradigm Futures says more rain is needed in some of the major production areas like Kansas and so far, the systems that have been forecast have been disappointing. There are also some global production concerns starting to emerge.
Corn is trying to follow the strength in wheat after two down days of technical and fund selling pressure, profit taking and increased farmer selling also weighed on the market. However, Beadle thinks there are concerns about lower feed demand with the growing cases of HPAI in dairy herds and poultry flocks.
Soybean meal traders have also been concerned about meal demand being compromised by HPAI and also hit resistance around the 50-day moving average and that pressure has kept a lid on the soybean market.
Beans are trading lower as well after having a poor technical close Tuesday, now below both the 20 day and the 50-day moving averages.
The markets continue to watch developments in the Red Sea, with crude oil rallying and the stock market seeing pressure. All that impacts the dollar and influences money flow in the commodities.
Cattle see fund selling return with continued uncertainty about HPAI and so even though the market staged a recovery rally Tuesday the funds are using strength to exit long positions. There is now a case of HPAI confirmed in an Ohio dairy, so it continues to spread. This uncertainty may keep funds liquidating.
Meanwhile, Beadle says hogs are benefitting from the news on improved demand and the recent strength in cash and cutouts reflect that. June lean hogs have hit new contract highs early on and that will also keep the funds buying.
