Grain and livestock are mostly lower early Friday, except nearby live cattle.
Allison Thompson with The Money Farm says corn and soybeans both ran up into chart resistance and are seeing some profit taking by technical traders.
However, after a 60 cent plus run off the lows in soybeans and nearly 50 cent rally in corn in December farmers are also selling some grain.
Corn and soybeans had been getting some support from dry extended forecasts for Argentina and that triggered more fund buying in corn and short covering by funds in both soybeans and soybean meal.
Wheat futures are following the lower row crop markets despite a pull back in the U.S. dollar index off new highs.
Weekly exports were also slow this morning due to the holiday week at 30.6 million bu. on corn, 17.8 million bu. on soybeans and 5.3 million bu. on wheat.
Live cattle and feeder cattle futures made new highs for the move Thursday and Mrach feeders hit an all-time high.
Cattle markets extended gains on the opening pricing in the record high cash trade but then consolidated.
Cash in the South hit record levels at $195-$196, up $2-$3. The North was mostly $310-$312 dressed, up $3-$4.
This could put the 5-area weighted average to new highs, exceeding the all-time high of $197.09 hit it early July of 2024.
Thompson says the key will be if funds continue to keep buying in the cattle market.
“We can have a blow off top at any time in the cattle and so putting on some protection in the form of hedges is a good idea,” she adds.
