Grain and livestock futures are mixed early Friday.
Scott Varilek, Kooima Kooima Varilek, says cattle are awaiting cash direction with producers and feedlots holding out for higher money as asking prices are ranging from $205 to $208.
Feeder cattle futures made all time highs and then scored a reversal yesterday but are trying to recover.
Varilek says there were some producers that lifted hedges, tired of paying margin calls and that produced the late day selloff.
However, he is confident that was not the signal of a top in the market.
Lean hogs are lower with tariff concerns still looming and overriding solid cash news.
Grain futures started with wheat and soybeans higher on follow through buying, but corn was lower the both corn and beans started to drift.
He thinks grains could chop around through the end of the month awaiting possible tarffis on April 2 and the big USDA reports March 31 looking for confirmation of the higher corn acres and lower soybean plantings.
Varilek says with the funds still long over 200,000 contract in corn a bigger than expected acreage number could significantly pressure prices on long liquidation.
Friday morning corn is not seeing much support from a private export sale of 8.6 million bu. to unknown destinations.
However, the 20,000 metric ton sale of soybean oil to unknown is supporting the soybean oil futures.
