Cattle: Cash cattle last week: $132-136.00 & $212-213.00 dressed. On 40 boxed loads cut outs up. $.29(c) to up. $.34(s) on light midday movement.
Comments: My concerns in the morning comments seem premature at best for now. I do find it more than coincidental that as some funds seem to be exiting grains, they might be rolling into long cattle and maybe hogs. Then again this current cold snap and heavy snows might bring up death loss at worst and wt. loss at best. In fact late reports show Tx. and Kansas traded $137.00, a new record high, in moderate to active dealings.
Hogs: Interior hogs early mixed at (e) off $1.02, (w) up $2.37; Pork cut outs fell $1.71, led by bellies and mostly loins.
Comments: Sharply higher run up led by Feb. Is the weather a factor? Or is fund money gravitating to meats, in this case due to suspected future tight supplies and publicity over the PED mess? What ever, sharply higher cash beef of late and new record highs in cash cattle might make pork look ‘cheap’ to fund managers. Late: contact informs PED confirmed in South Dakota.
GRAINS & OILSEEDS:
Corn: Try as it might to rally, the market was drawn lower on the day on the sheer size of the drop in beans/meal then secondarily wheat. Might be corn got support from unwinding of inter-market spreads. March was able to just squeeze by not making a new contract low
Soybeans: Liquidation. Has to be. January was already in a spot month liquidation but the improved weather for South America tipped the market lower and forced out what has been patient longs. I mentioned before March beans dropped out of its upward-channel and now January blasted through important range support and likely hastened stop loss liquidation.
Wheat: New contract lows. Again. There was little going on bullishly for the wheat as it was and then the beans imploded. The $6.00 area went from base-building hopes to a swinging door.