Grain markets started off lower Tuesday with livestock mixed.
Kent Beadle of Paradigm Futures says soybeans are lower consolidating after two up days but also with strong crop ratings at 67% good to excellent nationally, a one percent increase.
Plus, Beadle says the lack of confirmation on new crop China soybean export business and sharply lower bean oil is also dragging down the market.
Corn and wheat both saw early pressure with a higher dollar and strong crop ratings, plus the spring wheat harvest is providing some hedge pressure although harvest is behind at 6% verses the 10% average.
However, both markets quickly saw some bargain hunting and fund short covering to trade steady to even a bit higher.
Cattle futures open higher trying to recover with the strength in the stock market but then failed on more long liquidation by the speculative traders.
Beadle thinks cattle can retrace some of the recent losses if the financial sector can find some stability and with strong supply side fundamentals.
However, the recent pull back did chart damage in feeders and live cattle, so October live cattle need to first close above the 100 day moving average.
Lean hog futures tried to cattle early and were able to extend gains even when cattle failed due to steady cash and cutouts.
