Corn and soybeans end higher Thursday, wheat and cattle lower, hogs mixed.
Scott Varilek of Kooima Kooima Varilek says soybeans see a dead cat bounce off contract lows Thursday.
He says soybeans face considerable headwinds including the record crop in South America, the plunging Real to the U.S. dollar and tariff concerns.
Soybean meal and soybean oil have also been scoring new contract lows which is also a drag on the soybeans.
He is hopeful demand will be uncovered at these levels and stabilize the soy complex.
Soybeans helped pull corn up along with decent export news and that overshadowed the weakness in wheat which scored new contact lows again in the Soft Red Winter wheat class.
Varilek says corn has a strong demand story and he thinks that will eventually allow corn to divorce itself from weakness in soybeans and wheat.
Live and feeder cattle futures ended lower on technical selling and more chart damage, despite good early cash news.
Some early trade has taken place at $305 dressed and $191 live in the South but bids have been improving.
So is this topping action?
Varilek says the charts are beat up but if cash can continue to develop at higher money that will support the futures.
He says the break in the futures was delayed reaction to the plunge in the stock market on Wednesday and may also be routine positioning ahead of the USDA Cattle on Feed Report.
However, the placement number is expected to be down around 5% from a year ago which would be bullish.
Varilek says the question will be how much of the decrease in Mexican feeder cattle imports will be reflected in this month’s report?
Lean hog futures ended mixed as the funds have been shedding some of their record length at the same time disease is putting supply in question.
