Grains see early pressure with profit taking in corn and soybeans as contracts have run into chart resistance.
Soybeans in the May contract ran up just a few cents from the $12 mark yesterday with help from Conab lowering Brazil soybean production by 2.6 million metric tons but could not take that area out or close above it. So, it is consolidating.
However, Kent Beadle, Paradigm Futures, says the market is also seeing a bump in farmer selling as both corn and soybeans have had a good rally off the lows, so farmers are rewarding the market.
China economic news is also bearish as Country Garden Holdings, a real estate company in China, missed a monthly payment of $13 million.
Wheat is seeing pressure from lower Russian wheat prices as they are now selling wheat for under $200 per metric ton and undercutting all competitors. Plus, there is still fear of more China cancellations of soft red winter wheat.
Cattle extend Tuesday’s gains with help from higher boxed beef and Beadle says the market is still just consolidating within its recent trading range. Cash development will be important for giving the market direction.
Hogs are seeing profit taking and hedge pressure as Beadle says profit margins for producers with the pull back in corn and soybean meal prices has risen to $25 a head and there are attractive opportunities in the deferred or summer contracts. Plus, cash and the Lean Hog Index is starting to stall out.
