Grain and livestock futures are mixed early Tuesday.
Vince Boddicker, Farmers Trading Company, says old crop corn made another new low for the move overnight with national crop ratings improving by 3% to 71% good to excellent.
July corn is trying to bounce but the whole corn complex continues to face headwinds from weather, with no major threats on the horizon.
Soybeans are slightly higher with some optimism about the China U.S. trade talks taking place in London producing at least some short term results.
U.S. soybean ratings were up 1% on the USDA’s crop progress report at 68% good to excellent, with 90% of the crop now planted and 75% emerged.
Wheat futures are seeing pressure on continued profit taking after last week’s rally and with crop conditions also improving for both spring and winter wheat.
Spring wheat was rated 53% good to excellent, up 3% from last week, and above expectations.
Winter wheat also improved by 2% and it at 54% good to excellent. However, harvest is at only 4% nationally, which is 3% behind normal due to excessive moisture in the Southern Plains.
Cattle futures have chopped back and forth early in the session Tuesday but Boddicker says every break seems to be bought with the futures at a steep discount to the cash.
Cash hit a new record for a 7th week at $236.62, up a whopping $6.68 from the previous week. Cash has been up for 8 weeks running and has tacked on $29 in the process.
Boddicker says this should continue to support the futures rally, as well as the continued strength in boxed beef values and demand.
Lean hog futures are mixed early Tuesday with nearby contracts gaining on the deferreds. Hogs have continued to make new highs pushed by the Lean Hog Index which was up another $.68 coming into the session.
Boddicker says USDA also revised last week’s slaughter down 8,000 head and number continue to be tight due to disease.
