Grains Sees Additional Technical Pressure: Livestock Extend Gains

Kent Beadle with Paradigm Futures says corn and soybeans are seeing technical selling after failing at chart resistance again on Monday.

Grains are slightly lower Tuesday with livestock mostly higher.

Kent Beadle with Paradigm Futures says corn and soybeans are seeing technical selling after failing at chart resistance again on Monday.

The dollar index is also higher again Tuesday which serves as a headwind for the entire grain complex.

Soybeans are feeling spillover from a steep correction in soybean oil which is following palm oil lower.

Corn futures are being pulled down by wheat again today, despite more export business.

However, demand is strong for corn and soybeans with strong cash basis levels and bull spreading evident and Mexico buying another 4.35 million bushels of corn this morning.

Wheat futures continue to trade better moisture in winter wheat areas of the U.S. and Black Sea.

Beadle says there is an expected improvement in wheat ratings this afternoon.

All three wheat exchanges made new lows for the move on Monday and then ended well off session lows which indicates selling exhaustion to Beadle as well as underlying demand and lower price levels.

Hard Red Winter and Spring wheat have both taken out key support areas already this week that need to hold.

Cattle futures made new lows for the move Monday and reversed after selling exhausted.

Cattle are seeing follow through buying this morning as a result but to keep the momentum going Beadle says the market will need to see at least steady cash.

Lean hog futures make more contract highs on fund buying and strong demand.

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