Grain futures are all lower early Monday, with cattle and hogs higher.
Brad Kooima, Kooima Kooima Varilek, says both live and feeder cattle futures are making new contract and all-time highs on last week’s record cash trade.
Cash developed late Friday in the South at $212-$213, up $2-$3.
Northern trade was mostly $342-$343 dressed, up $5-$6 and $215-$218 live.
Kooima says showlists are tight again this week especially in the North and so he is anticipating another higher week of cash this week.
He says the tight supplies are giving the feedlots leverage over the packers even though they have cut kills the last several weeks.
Cattle slaughter was only 555,000 head last down 21,000 from the previous week and down 59,000 from the previous year.
Funds have been buying in the cattle futures as well and as of Friday’s CFTC Commitment of Traders Report had repurchased 14,000 contracts in the live cattle are are now long over 120,000.
Feeder cattle futures are also reacting to news over the weekend that USDA Secretary Brooke Rollins has sent a letter to Mexican government officials threatening to shut the U.S. border to imports once again if Mexico doesn’t adhere to U.S. guidelines to prevent New World Screwworm from entering the U.S.
Lean hogs reversed a lower opening to make new highs for the move as funds have been piling in to buy and are now over 58,000 contracts long.
Cash and cutouts have also been supportive however.
Grains are all lower on weather and planting progress across the Corn Belt.
While rains are still expected in parts of the Corn Belt this week, the extended forecast looks drier for the areas that need a break from rain for planting to proceed.
Meanwhile, dry areas of the Western Corn Belt have received beneficial rain and so have hard red winter wheat production areas.
As a result, Kansas City wheat futures are scoring new contract lows Monday morning which is also an anchor on the corn market.
