Grains try to recover after the collapse on Monday which produced new contract lows in soybeans and all three classes of wheat.
John Payne, Advance Trading, says this is just corrective buying because its difficult for grains to get any traction without a weather threat.
He says the derecho Monday night in parts of Iowa and Illinois did cause some flooding and crop damage but it is not enough to move the needle with the big crop potential.
As a result, Payne says the trend following funds continuing to press the market.
“So far for the funds this has been an easy sell,” he says.
He says the higher acreage figures coming out of Brazil for the new crop season are also weighing on corn and soybean futures.
“Some people want to make the case that the cure for low prices is low prices but that’s hard to see when the acreage in Brazil just keeps going up from a world perspective,” he adds.
Cattle also try to recover but seasonals are softer and cash and cutouts are falling verses the big discount the futures have to cash. So what wins out?
Hogs also trying to bounce but face headwinds on both the supply and demand front as hog inventory has still been ample and consumer buying of pork has not been enough to chew through the supplies.
