Grain markets sank on Tuesday with the hogs, while cattle scored new highs.
Allison Thompson with The Money Farm says a combination of bearish factors combined to pressure the grain markets.
The fast planting pace for corn and soybeans weighed on the market as nationally corn seeding was at 24% on Monday afternoon.
Soybean planting was at 18% done, 6% ahead of average.
Spring wheat seeding was 9% ahead of normal as well at 20%.
Thompson says rains have slowed down planting in some areas of the Corn Belt but the moisture is also helping some of the dry areas get off to a better start.
The complex saw positioning ahead of first notice day for the May futures which generally triggers liquidation to avoid delivery and some farmer selling or pricing.
Plus, it is end of the month which triggered fund selling.
Markets like soybeans ran into chart resistance, and was also weighed on by lower soybean oil.
Bean oil made new contract highs on Monday and saw some end of the month profit taking and spread unwinding with soybean meal.
Plus, meal reacted negatively to news that China’s agriculture ministry reported it aims to cut grain and soymeal use in livestock feed by 2030.
Although July soybeans did at least hold the 200-day moving average support area on the charts.
The dollar was also higher, which weighed on the grain complex.
Winter wheat ratings were also better than expected with 49% of the crop rated good to excellent, up 4% from last week.
Hard red winter and soft red winter wheat are already at contract lows and she is hopeful the market doesn’t have too much farther to fall before finding chart support.
Cattle futures made new highs again in both live and feeder cattle offerings pushed by record cash.
Thompson says she is watching technical signals such as the RSI or Relative Strength Index and in the cattle market it is looking weaker than when cattle made the last highs.
She says that may be pointing towards at least a slow down in the futures rally.
However, it still all hinges on the strength of the cash market.
