Grains slide into the weekend, along with live cattle.
Bryan Doherty, Total Farm Marketing, says grains saw profit taking and techinal selling on Friday after hitting chart resistance.
However, farmer selling also picked up as producers are seeing harvest start to wind down and have so there is some hedge pressure, plus they rewarded the rally earlier in the week.
He says some farmers also had delayed pricing contracts that had to be executed on.
Rain chances in South America and the Southern Plains in the 10 day outlook also had some traders taking out risk premium.
“There is rain in the forecast for key areas of Argentina and Brazil and so there is not a weather story. They did see delayed planting due to dryness but now they are getting relief,” he says.
Doherty thinks grain prices will be well supported by strong underlying demand.
“End users are buying value in the grains and corn exports are about a third higher than last year at this time. Exporter customers are looking at these prices which are about a $1 lower on corn than at this time last year and $2 more two years ago so this is a good space for them to buy inventory,” he explains.
Wheat saw double digit losses on notable technical selling after hitting overhead resistance, plus a higher dollar and forecasted rains in Southern and Central Plains wheat areas.
After making new highs for the move, live cattle consolidated heading into the weekend and the Cattle on Feed Report.
Cattle opened higher on the heels of hedge lifting and $2 higher cash trade but then ran into chart resistance on many contracts which triggered some profit taking.
The Cattle on Feed Report showed on feed slightly below 100%, Placements at 98% just above expectations, Marketings at 102%.
