Grains start mixed and push mostly lower early, with livestock higher.
Randy Martinson, Martinson Ag, says soybeans are seeing profit taking after three higher sessions, but eyeing South American weather.
Areas of Argentina that have been dry are seeing rain in the extended forecast, while areas of Brazil that have been too wet will get some welcome drying.
The soybean market faded another 7.3 million bu. of export business to unknown destinations this morning for the 2024-25 marketing year after 12.3 million bu. yesterday.
Corn is seeing some spillover from the lower soybean market but Martinson says corn has also seen some profit taking.
“Yes, we had profit taking and farmer selling after the March contract could not close above chart resistance at the $4.50 level,” he says.
Wheat saw light short covering early but then profit taking set in, with spillover from lower soybeans and a higher dollar.
Martinson says, “The wheat market is still noting crop losses in Russia but demand needs to pick up for U.S. wheat and yesterday’s export sales at only 10.7 million bu were disappointing.”
He watches Minneapolis wheat most closely and says the March contract did get above $6 but will also need more demand to keep going.
Cattle futures started off a bit higher and need to close higher to negate yesterday’s reversal action.
Futures got up into chart resistance and saw profit taking, maybe even some hedge pressure.
Regardless, the market faded sharply higher cash and cutouts and closed lower after making new highs for the move, which is technically negative.
Cash trade Thursday in the North ranged from $302 to $312 dressed and $192 to $196 live, with the average at $194, while in the South there was some cash trade at $192 in Texas.
So far this week, Northern dressed deals have ranged from $295 to $312, the weekly accumulated weighted average so far is $302.82 in Nebraska (last week’s weighted average was $296.69), so up $6.13. Southern trade mostly $190-$191, Steady to $1 higher.
There are indications that APHIS is close to releasing guidance on protocols and a date for when the Mexican border will open to feeder cattle imports.
