Grains are mostly lower early in the session on Tuesday except new crop corn. Livestock are mostly higher.
Kent Beadle, Paradigm Futures, says selling continues in much of the grain complex on profit taking as corn, soybeans and wheat contracts have all run into technical resistance.
May soybeans were stopped by the 200-day moving average, May corn is struggling with the 62% retracement level as well.
The grain markets had a significant rally off the tariff lows and have become overbought, according to Beadle, so a profit taking correction is not a surprise.
He says the market is also seeing the Goldman roll in effect and that could explain why old crop corn and soybeans are down more than deferred contracts.
The weather is also a factor as it looks more favorable for planting in the heart of the Corn Belt this week.
Corn planting was slightly behind expectations and average at 4% complete nationwide but should pick up this week.
Rain in the forecast for the hard red winter wheat areas is also weighing on the wheat market.
Crop condition ratings for wheat were at 47% good to excellent, down just 1%, which was a surprise considering the flooding in the southern tier of the soft red winter wheat areas and that may also be a bit disappointing for the trade.
However, Beadle says those areas are expected to get more rain, which could be a problem.
Tariff and trade news has been more subdued but the administration says around 70 of the 130 countries named for reciprocal tariffs coming to the table to talk.
The one exception is China where the trade war continues to escalate.
Yet, there has been some export buying during the 90-day pause, with flash sales that have included another 4.3 million bu. of corn to Portugal announced Tuesday morning.
Beadle thinks that is likely to continue.
Cattle futures are higher this morning again with the stock market.
June live cattle briefly got above the $200 mark and will need a close above that level to keep the rally going.
Beadle says fundamentals are still strong in that market and suggest it should be well supported on pullbacks.
Cash trade was lower last week with the 5-area weighted average at $207.70, down $3.47, but the futures are at a discount.
and and weather. Cattle extend gains with help again from the stable financial markets.
