Soybeans are higher early Thursday, with corn and wheat slightly lower, cattle and hogs are mostly higher.
Mike Minor, Professional Ag Marketing, says corn and wheat futures have had a nice rally off of contract low levels hit last week and oversold conditions which induced some fund short covering.
He says several little fundamental items also contributed including some U.S. and global weather concerns.
However, those markets have corrected enough and are running into chart resistance.
To get over those levels, Minor thinks the market will need to see proof of trade deals or some other bigger catalyst.
Soybeans started weaker with the pull back in bean oil but then climbed back into positive territory following a rally in soybean meal.
Soybean meal had strong weekly exports at nearly 308,000 metric tons.
The bean oil market is lower on concerns about unfavorable biofuels policy.
The market is closely watching the developments on biofuels policy regarding 45Z in the House reconciliation bill and the RVO levels which are soon to be set.
Minor says there are also 161 Small Refinery Exemptions (SREs) the EPA will rule on shortly and the first Trump Administration granted hardship waivers to refiners.
Cattle futures were higher early following stronger cash trade on Wednesday. Although it was light volume the sales were generally $2 higher than last week’s weighted averages in the North.
Boxed beef values have also continued to move higher which is supportive.
Lean hog futures saw early strength on the heels of a strong weekly export report with sales of 37,400 metric tons and China also bought 7,800 metric tons.
