Ag markets end mostly lower Thursday except soybeans and Hard Red Spring wheat.
Mike Zuzulo, Global Commodity Analytics, says corn and wheat set back on profit taking.
December corn was up for a string of four days and ran into chart resistance.
“I do think we hit chart resistance on the December daily chart. You know we have those July highs that we’re trying to get to as we’ve taken out the August highs in both the Soft Red Winter wheat and the corn,” he explains.
He also thinks the pullback in corn was tied to farmer selling and early harvest pressure.
Zuzulo thinks that wheat has been providing leadership for the row crops and even though the market took a break Thursday he says weakness in the Russian Ruble has been supporting wheat.
Soybeans started lower but rebounded into the close with export business to China and unknown destinations.
Plus, there are some global production concerns, including dryness in the Black Sea and Brazil, which is impacting planting of first crop corn and soybeans as well as grain movement to export markets.
Zuzulo does have concerns about the low water levels on the Mississippi and a possible hiccup in China’s economic recovery which could be negative, especially for the soybean market.
Cattle futures had a tough technical day with April and June live cattle gapping lower and most contracts taking out key support at the uptrend line.
Lower cash cattle trade also drug down the futures coming in at $181live in the South, down $2 from last week and $288 dressed in the North, down $2.
Zuzulo says lean hogs followed cattle but also saw some profit taking after the recent rally, plus cutouts have been weakening.
He is also thinks China economic concerns are weighing on the hog market.
