Grains and cattle are higher early, with hogs mixed.
Brad Kooima of Kooima Kooima Varilek says cattle futures recovered nicely from Friday’s selloff with some contracts making new highs for the move, pricing in record cash cattle trade.
Cash trade in the North was mostly $200 live paid by most of the major packers and even some $201 by a regional. Dressed prices were mostly $312 to $315 up $5- $8.
The South traded mostly $196-$197, which is up $4-$5, and that should lead to a new record for cash this week.
The previous all-time high on cash was set in early July with the 5 area weighted average at $197.09 and that should be exceeded this week.
Cash has been higher for 7 straight weeks and Kooima thinks it will be higher again this week despite the ability of packers to pull formula cattle.
He is basing that on the winter storm system moving into cattle feeding country, strong beef demand and tight supplies, especially in the North, as steer and heifer slaughter for 2024 ran .5% below a year ago.
The U.S. is still banning Mexican feeder cattle due to New World Screwworm which is also supportive.
Lean hog futures are mixed after closing below the 100-day moving average on Friday but Kooima thinks the funds will continue to liquidate.
Grain futures are recovering after the selloff Friday.
Soybeans and meal are leading the rally with the hot dry 15-day forecast for Argentina and Southern Brazil, which is triggering more fund short covering.
Corn is being lifted by soybeans and meal but also the Argentina weather and positioning ahead of the USDA reports.
Wheat is following corn and soybeans and seeing some fund short covering after hitting new contract lows in Minneapolis and Chicago contracts on Friday.
The grains are also seeing buying due to the sharply lower dollar and ideas of more targeted tariffs from the Trump Administration.
