Cattle: Cash cattle so far Ks./Tx. $119.00, Neb. $120.00; boxed beef higher on moderate movement; Not bad action as August makes a modest new swing low but recovered quickly to stay “in range”.
The longer cash cattle can hold steady the better to look for a near term bottom. Wonder if this ‘cool’ weather for a string of days will bump beef demand up on the ‘barby’?
Hogs: Interior hogs mixed; pork midday cut outs sharply higher early; futures mixed then lower in what seemed a light volume session. Loins and bellies strongly higher led the cut outs up; retail meat report suggests end month, low-priced ads on pork/beef and poultry.
GRAINS & OILSEEDS:
Corn: The story was in the September as the squeeze jig is up. A large drop in corn basis by ethanol makers also spooked the longs; unwinding of bull spreads kept support under the new crop.
Soybeans: Roughly a $1.75 drop in 3 days for the August top to bottom a fitting response to the alleged ‘squeeze’ but here again, it also whipsaws the back months unnecessarily. Nonetheless, weather currently looks very favorable in general and longer term forecast are rather benign.
Wheat: No major selling here, mostly just a case of possible new longs saying ‘I think I’ll wait’ as corn and beans drop. However, while I believe the market building a strong demand base, cheaper corn and ample-looking Black Sea crops not an incentive to buy either.