Grains start mixed Monday morning.
Soybeans and soybean meal were higher in the early session seeing corrective buying. Randy Martinson, Martinson Ag, says beyond being oversold the market doesn’t have a great deal of reason to rally. Soybean harvest is rapid in Brazil and the USDA Ag Outlook Forum is coming up at the end of the week and there are expectations for higher acreage around 86.4 million acres.
Wheat is back lower seeing technical selling with a stronger dollar, continued poor demand and competition from Russia. Plus, winter wheat areas in the south have received some precipitation.
Corn initially opened higher with soybeans but is moving sideways stuck between higher soybeans and lower wheat. The market is also gearing up for the USDA numbers with expectations of lower acreage, down to 92 million acres, being offset by trendline yields of 182 to 183 bushels per acre. That would likely push ending stocks up to 2.6 to 2.7 billion bushels according to Martinson.
The funds extended their short positions in all the grains last week says Martinson. He says it’s surprising and unusual to see the speculators this short going into the U.S. planting season.
Cattle are seeing slight gains in live cattle, but the action is somewhat disappointing considering the sharply higher cash trade at $182 in the South, which is $4 higher. The northern trade was even higher dressed, ranging from $280 to $290 but mostly $289 which is $10 higher than the previous week. Feeder cattle futures are seeing better gains after higher weekly closes and corn near contract lows.
Hogs were two-sided early but are starting to fade with lower cutouts and the lower lean hog index.
