Grain futures ended sharply higher on Friday, with livestock mostly lower.
Garrett Toay, AgTraderTalk, says wheat led the rally on fund short covering but fundamentally the market was trading some of the Black Sea war headlines with a Russian attack in Ukraine.
Plus, he says the market was adding weather premium with some concerns about winter kill with bitterly cold temperatures in key production areas.
Corn made new highs for the move with some spillover help from wheat.
However, managed money and especially index fund traders continue to buy corn as a hedge against inflation and due to strong fundamentals, including robust demand.
However, March futures once again failed to close above the $5 mark but they did break out of a wedge pattern, according to Toay.
That could eventually point to the $5.08 area, which is the May high.
Soybean futures also saw some follow through technical buying after holding and bouncing off support Thursday at $10.23 on the March contract which he says is the 62% retracement level, but also failed around $10.41 1/4 on the March chart.
Harvest delays in Brazil may be adding some support to the soybean complex as well he says.
Cattle futures also ended lower as cash trade in the North was light at $203 live and $321 dressed, which continued the trend of lower prices.
Boxed beef cutouts were also lower at noon with Choice off $2.26 and the Choice/Select spread narrowing to $6.59 which Toay says indicates to him there is some consumer push back with the higher retail prices.
Packers also cut kills this week to try to prop up the boxed beef values and their margins.
Toay says the April live cattle contract looks rough technically and may have done some chart damage.
Lean hog futures ended mostly lower seeing some profit taking after hitting resistance again up at the contract high areas.
