Cattle: Cash cattle last week: $147.00-150.00, Neb dressed $236-238.00; on 57 boxed loads cut outs up. $2.82(c) to up. $2.37 (s) on light midday movement.
Comments: Technical follow through on the fat futures key reversal but more like destruction for the feeder cattle hitting limit down. With midday beef sharply higher again one has to assume either 1) a blow off cash top is in the making or 2) futures just needed an overbought correction. As mentioned yesterday, my lean would be to the former.
Hogs: Interior hogs lower west, N/E east.
Pork cut outs fell $.68, slow trade.
Comments: I think back hogs kept whittling down its premiums after the bull-scare of a vaccine for PEDv made headlines, July holding well, somewhat inexplicably well considering its large premium to the cash/index. Perhaps it’s just a function of unwinding bear spreads?
GRAINS & OILSEEDS:
Corn: Nothing day and proud of it. As mentioned yesterday, the market looked like it was overly saturated short and needed an excuse to at least bounce some. That excuse likely the bean pop but perhaps there was some export pricing around. Of interest: ethanol ‘plunges’ after EIA reported a new record high weekly production number.
Soybeans: Old crop beans in the news as 1)market supported by oversold technical backgrounded by talk of weekly old crop export sales tomorrow and 2) overnight sale to Unknown of 140,000t old crop (of course South American beans MUST be cheaper!). Well, at least the boys keeps my blood flowing.
Wheat: KC leads the way on a sharply higher move due to high rains, flooding and the like effecting harvest and quality. That only seemed to help HRW ad with it active inter-market spreading.