Soybean Strength Returns and Supports Corn, Wheat Retreats

Vince Boddicker with Farmers Trading Company says soybeans continue to see Brazil weather concerns and technical buying. When soybeans put in an early harvest low they tend to rally around 80 cents and have cleared that mark already. However, if Brazil stays dry the market could continue to price that in.

Grains and livestock are mixed early Friday.

Vince Boddicker with Farmers Trading Company says after hedge pressure Thursday, soybeans see buying resume.

Forecasts continue to look fairly dry for Central and Northern Brazil to start October and that may be lending support.

Rumors of China soybean sales continue to circulate and a flash sale of 20,000 metric tons of soybean oil to South Korea are feeding the demand bulls.

However, some of the rally has also been technical buying he says.

However, Nov stopped just short of the 100 day moving average and will need more bullish news to get through that level such continued drought in South America.

Boddicker says when soybeans make an early harvest low they historically have rallied about 80 cents and this rally has exceeded that mark.

Corn is stuck between higher beans and the lower wheat market but he says is trading in a range.

He says wheat set back early on slower exports and some hedge selling.

Cattle futures make near for the move highs on the heels of higher cash.

A light trade was reported in most areas yesterday with Southern live deals marked at mostly $185, $2 higher than last week’s weighted averages, while Northern dressed sales were roughly $4 higher at mostly $294.

Lean hog futures see initial pressure as the USDA Hogs and Pigs Report was mostly in line with estimates with the exception of the marketing weight breakdowns.

The categories over 120 pounds came in well above expectations which is negative for upfront supplies.

However, the market quickly came off lows with end of quarter squaring.

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