Cattle: Bit of a technical reversal deserves respect ‘just in case’ it’s a tip off to something like cash cattle topping out. Practically though conditions were overbought flat price and vs. hog spreads. Cattle-On-Feed Friday if the government back to work? Avg. est.’s: On feed 92.5%; Placed 101%; Marketing 104.5%.
Hogs: Sharp gains in a whipsaw type trade. Hogs have been getting hit both flat price and on spreads vs. cattle lately and perhaps both overdue for a correction. My reading of UrnerBarry’s pork report did show some strength while their beef some weakness.
GRAINS & OILSEEDS:
Corn: Here we go: corn higher because farmers despatate to get beans into harvest due to being a more ‘perishable’ or ‘vulnerable’ crop being way behind usual harvest progress; the result is less corn harvest and what corn was done put into storage as producers are bullish corn but less-so beans. That’s today’s story anyway apparently.
Soybeans: Opposite of the corn in that a race to harvest adding pressure on the cash markets. And no signs of China under the market, at least until the USDA reopens their books on the subject. China reportedly has been buying large Canola quantities out of Canada so beans out of the U.S. makes sense as well. NOPA crush a bit better than expected and soyoil stocks a bit lower than expected (hence the meal/oil spreads?).
Neither the corn nor the bean scenario seems very credible as far as a trend is concerned, more so was a ‘fill-in-the-blanks’ for fund activity day to day.
Wheat: Moderate losses in yet another ping-pong match on spreads vs. corn that has wheat now pressured by improved U.S. weather, a lack of visible exports and technial resistance as December Chigo. failed to cross $7.00 last week. And simply funds not buyers here but in corn.