Grains are higher early Friday led by soybeans and a limit up move in bean oil, with livestock lower.
Scott Varilek, Kooima Kooima Varilek, says cattle are seeing risk off selling tied to the news overnight of escalating war between Iran and Israel which has the financial markets sharply lower.
Cattle futures had already broke this week in all but nearby contracts prior to this black swan development.
Varilek says it was tied to concerns about ICE raids in processing plants, and slaughter figures have been lower this week, but he says there is no concern about backing up cattle.
Futures are also seeing some profit taking and hedge pressure as prices were getting so high, presenting a great deal of risk.
However, the market is still seeing bearish divergence futures mostly lower while the cash and cutouts have been moving higher.
Cash developed at $235 again in the South yesterday, up $4 to $5 from last week with some light trade in the North at $380 dressed, steady.
Beef values have continued to move higher with Choice cutouts up $1.96 yesterday at $376.72, with Select up $2.32.
Lean hog futures are mostly lower early seeing some profit taking after making new contract highs in the deferreds.
Soybeans are up sharply with soybean oil limit up on the news of EPA raising, not lowering, the RVO levels for biomass based diesel to 5.61 billion gallons for 2026 and 5.86 billion for 2027. Those are above the levels asked for by the industry and great news.
Soybean oil was up prior to the RVO news with crude oil soaring over $5 on the unrest in the Middle East.
The rally in soybeans is helping to pull up corn and wheat.
