Cattle: Cash cattle last week: $143.-145.00; on 67 boxed loads cut outs up. $.44(c) to up. $2.68 (s) on light midday movement.
Comments: LATE: Neb. starts out at $146.00 live up $1.00 and $232-233.00 dressed up $1-2.00.
The June cattle led the way up on likely hedge shortcovering and while there was some fund buying in the back months, it was on the light-side. If not for the beef dive the last couple days, we might have used the term “contra seasonal” for the cash markets. Nonetheless, the onus back on the bears to see if this new high rally keeps its legs under it.
Hogs: Interior hogs N/E; Pork cut outs rose $2.39 on a hams and picnics.
Comments: New swing highs here as bullish beef emotion spills over to the hog pits. Greatly improved packer margins, interior hogs tying to stabilize (when ever they get a round to it) and maybe this time some fund money behind the rally. And of course the ubiquitous PEDv fears.
GRAINS & OILSEEDS:
Corn: Nice little rally (it’s relative) to end the week. I suspect the oversold conditions, shortcovering and a bit of money put back on ‘just in case’ weather not as good as forecast now.
Soybeans: Not surprising here that the beans lagged the rally in the corn. Turn around is fair play and some unwinding of bean/corn spreads no out of the question. Additionally, some unwinding of the old crop/new crop spreads and light weather related shortcovering in the November evident ahead of the weekend…again, ‘just in case’.
Wheat: Not messing around on its light/moderate correction after taking a pounding of late. KC and MGE had the best rallies and some of that shoprtcovering and perhaps unraveling inter-market spreads.