Turnaround Tuesday for the Grain Markets, Not So Much For Livestock
Market Recap & Closing Prices
Turnaround Tuesday played out today, with corn and bean futures recovering losses while wheat added to gains on the week.
May corn was 7 ¼ cents higher, settling at 620 ½, the new crop December contract was 2 cents higher at 559. The strength comes after defending the lows from the previous days lows, 606 ¾-608 ½. 620-622 ¼ is the hurdle the Bulls want to jump over in order to spur a rally back towards the 640 level.
May beans broke lower yesterday which led to additional weakness in the overnight and early morning trade. The market found support mid-morning near the 100-day moving average at 1485, which may have helped prices rally back into positive territory by the close. May beans settled 2 ½ cents higher at 1494 1/4. $15.00 will be the psychological level the Bulls will want to get out above. The new crop November contract didn’t fare as well, settling ¾ of a cent lower to 1338.
Wheat was able to feed off of gains from the past two sessions, taking prices within stone’s throw of the $7.00 market. May Chicago wheat finished the day 11 ¾ cents higher to 695 ½. If the Bulls can chew through $7.00, we could see the short covering propel the market back near 720.
April live cattle had an inside day and finished the day .50 lower to 163.05. The growing concerns over a recession have triggered long liquidation over the last week. If the selling continues, traders will look to the 100-day moving average as potential support, that comes in at 161.10.
Feeder cattle futures made new lows for the move, pulling prices back to the March 3rdbreakout point. A relief rally in corn likely didn’t do the market any favors. The April contract finished the day 1.32 lower, settling at 195.75.
April lean hogs continued to pullback in today’s trade, settling at 85.40, that was .82 lower on the day. The Bulls want to see a close back above the 50-day moving average at 86.55.
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