Grain and cattle markets start higher then turn mixed on Thursday.
Randy Martinson, Martinson Ag, says the grains markets started the day session higher with weekly exports strong except for old crop wheat.
For the week ending April 10, USDA reported export sale commitments on corn at at 61.5 million bu. with new crop at 0.4 million bu., soybeans at 20.4 million bu with 6.7 million bu. new and wheat at only 2.8 million bu. with 10.1 million bu. new crop.
Year to date corn exports are running 27% ahead of last year’s pace, soybeans 13% and wheat at 14%.
Soybeans were unable to hold that early strength with pre-holiday positioning.
However, wheat is seeing short covering with a push from weather as hard red winter wheat areas in the U.S. are expected to see less rain out of the weather system moving through this weekend.
Plus, Martinson says the extended forecast for the growing season looks dry for the Western Corn Belt and the Black Sea which has traders adding some risk premium.
Weather is also providing some support to corn with ideas of planting delays as heavy rains hit part of the South and Eastern Corn Belt.
Despite any big market moving headlines, Martinson says trade is still a focal point and there may have been some disappointment no deal was announced before Japanese officials left town.
No progress has been made on China talks and instead a slight uptick in tensions continues.
The market is watching for an announcement from the USTR’s office on the Section 301 tariffs on Chinese linked vessels.
News reports suggest they could be delayed for study until mid-November, which would be positive.
Cattle futures saw early strength on follow through fund buying and being pulled by the cash market.
April feeder cattle futures once again scored new contract highs chasing the cash index before expiration, while deferred contacts have yet to make new highs.
Fed cash trade news has been light and may not develop until after the Cattle on Feed Report but optimism has been growing for steady to firm prices as the futures have rallied.
Lean hog futures are seeing some profit taking after gains earlier this week.
