Cattle are mostly higher early Monday in recovery mode. Grains are mostly lower to start and so are hogs.
Brad Kooima, Kooima Kooima Varilek says live and feeder cattle futures are seeing some strength from better cash news with the South trading fully a $1 higher at mostly $187.
The North was mostly steady at $187 live and $296 dressed.
Kooima says live and feeder cattle futures made new highs for the move on Friday and then saw some profit taking and ended lower scoring reversals.
The futures were overbought and needed a correction.
So cattle are trying to recover Monday and it will be important to negate Friday’s reversal technically for the futures to move higher.
Lean hog futures ease on profit taking as they are also overbought and the LHI was slightly lower.
However, the funds are long over 71,000 contracts and have been pushing the market beyond what the fundamentals would suggest so Kooima thinks they are nearly out of gas.
Meanwhile, corn and soybeans are seeing follow through selling from Friday.
There was no real bearish or bullish news in the WASDE so the markets are seeing pressure from a fast harvest, farmer selling and South American rain chances.
Kooima is hopeful corn and soybeans can hold support areas on the charts including November soybeans at $10.
