Cattle futures opened higher and feeders are holding gains with lower but live cattle see some profit taking despite better cash news.
Brad Kooima, Kooima Kooima Varilek, says he thinks the cash market has bottomed and he expects higher trade this week as packers were aggressively seeking cattle late Friday into early Monday.
Kooima thinks the live and feeder cattle futures can also technically build on last week’s higher weekly closes.
He is watching $179.50 resistance in December live cattle for confirmation though.
Fundamentally, the Northern feeding areas are still current and the South continues to struggle with higher weights.
He says its a function of high priced feeder cattle replacements, lower corn prices and packers trying to improve efficiencies.
Lean hog futures started mixed with the front months gaining on the deferreds with some forward spreading.
Kooima says the hog market may continue to struggle to hold gains with softening cash and cutouts, plus rising seasonal numbers and tightening slaughter capacity.
Soybeans opened higher with a flash export sale of 4.85 million bushels to unknown destinations but the November contract continues to fight to get above the 50 day moving average.
Meanwhile, corn is down with wheat and both seem to be seeing some profit taking after also running into chart resistance and after a higher day Friday and higher weekly closes.
However, wheat is also seeing pressure from rain chances in the Southern Plains.
Kooima thinks the seasonal lows may be in for both corn and soybeans.
However, he cautions that row crops may struggle to rally further with harvest pressure and farmer selling picking up.
