Soybeans end higher, while corn and wheat end mixed. Live cattle end higher, with feeders lower.
Kevin Duling, KD Investors, says soybeans saw a bounce Thursday after four down days on technical buying and with help from soybean oil.
Soybean oil had corrected lower the last few sessions but was able to rally with a big reversal higher in the crude oil market.
Solid weekly exports were also helpful at 15.7 million bu.
There was also some optimism about trade talks starting with China.
The July soybeans held key support on the charts and closed above the 100 and 200-day moving averages.
However, Duling thinks soybeans need to take out last week’s highs to be able to see much more upside momentum.
Wheat led gains on the open and pulled corn higher initially.
But why couldn’t corn and wheat hold those early gains?
Duling says the rally was capped by weather as the forecast looks more favorable for planting next week for corn.
For wheat the Drought Monitor showed a large decrease in drought areas and there is some follow up precip in the forecast.
He says the strength in the U.S. dollar index on Thursday also threw cold water on the rally.
By the end of the day July corn was down over $.03 and July hard red winter wheat was down $.02 and made a new contract low.
Live cattle ended higher on the heels of more record cash trade.
Sales in Nebraska on Thursday were light but hit $223 live and $352 dressed, which was up $10 from last week’s weighted average.
Southern trade on Wednesday was at $218, up $5 to $6.
Additional trade took place on Thursday in the North with a range of $340 to $352 dressed, but mostly $350, up $8 from the previous week’s weighted average.
However, he says the market looks somewhat tired as the response by the futures to the sharply higher cash was somewhat muted and feeder cattle reversed lower.
However, feeders saw light profit taking after hitting contract highs the previous session.
