Cattle: Cash cattle last week: $144.-146.00 south, $147-147.50 north; on 53 boxed loads cut outs up. $1.32(c) to up $.29(s) on light midday movement.
Comments: Looks like the lighter placement number on the one hand of talk of a large corn crop holding back feeders suggested a pinch point in cash cattle supplies the next few months. Nice bullish breakout on the charts, now we’ll see if it holds. History suggests otherwise but perhaps domestic beef demand or beef exports are at play as well.
Hogs: Interior hogs East no comp., west down $.60;
Pork cut outs rose $.02, secondary cuts.
Comments: Higher but mainly off the cattle rally it seems. Perhaps the cattle is front-running the talk of a PEDv drop off of hog supplies “any day now”. Individually, hogs had little going for them except the cattle yet helped them from falling apart technically maybe. Again, if playing PEDv use options for now.
GRAINS & OILSEEDS:
Corn: I certainly believe there was a decent amount of bean/corn spreading but for reasons I cannot figure. One possibly is that major effort going into corn plantings leaving bean planting to fall behind? Look at the Nov.bean/Dec. corn chart.
Soybeans: Simplicity? July beans held important support; there were no further talk of Brazilian imports nor China cancellations. Hence, bottom picking begot outside buying begot technical buying, etc. Bean/corn spreaders? I do not know. Volume however looked light again. Trading affair indeed.
Wheat: Another reason it looked like bean/corn spreading: even wheat succumbed to the bean rally, likely prompting some oversold shortcovering. Not a lot of fresh news around.