Cattle: Cash cattle last week: $144.-146.00 south, $147-147.50 north; on 67 boxed loads cut outs up. $2.43(c) to up $1.52(s) on light midday movement.
Comments: Consolidation day? Benefit of the doubt for now and is a technical conditions when overbought. Another jump in the beef as movement remains decent indicates retailers are gearing up for a big Holiday market. My warning flag: open interest up nearly 11,000 yesterday means the rally may depend on how much patience the funds have because they have not had much patience being long in recent months.
And one Old School fact: to reiterate, what’s the best month for beef? May. What’s the worse? June. History to repeat itself?
Hogs: Interior hogs not established;
Pork cut outs rose $1.43.
Comments: How can one love cattle if not hogs? Cattle numbers and better demand for beef usually a negative here but the PEDv fear continuously thrown at the hog market has a hard time sticking…when normally it would not. What’s that say about the PEDv hype (no dispersion on producers that have it).
GRAINS & OILSEEDS:
Corn: Choppy, two-sided session. It seems that the beans/meal early all that held it together and when beans weakened, corn could not hold. Speedy plantings, some favorable weather forecasts, lighter export sales the main focus then.
Soybeans: July popped over $15.00 for a moment but failed to maintain it. Therefore I suspect long profit taking and the July holding nearby resistance, prompted the selling. Or maybe lack of buying once funds were done with it. Planting not a major issue yet. And no, we are not running out of old crop beans.
Wheat: Chicago wheat succumbed to the weakness in corn (beans) and not because of serious selling: lack of aggressive buying did it. Talk about Russian, FSU dryness and Ukraine’s political situation helped add some support but all three premature to judge adequately. No export demand visibly. Some intra-market spreading KC and/or MGE vs. Chgo.?