Comments: Strong futures as cash cattle held together well considering the beating the beef took. However, the plus might have been the large beef movement volumes I have been talking about i.e. fire sale to clear out inventory and might have needed to keep live supplies coming. Then again there’s a cattle on feed report after the close and I am sure that has something to do with the ‘positioning’ ahead of it. Beef midday just weak and on lighter movement.
Comments: Most of the weakness was a lack of new buying interest it seemed, reversal or not. The market needed to deal with eastern interior falling another $2.55 to just off $94.00 (west N/A); midday cut outs rose only $.86 even as cash bellies rise nearly $16!!!! Hams and loins helped ruin the party.
GRAINS & OILSEEDS:
Corn: Soybean meal seemed major source of support here as did the results from the crop tour, possibly. One can say ‘better export demand forming’ but one cannot point to any confirmation of that, anecdotal or otherwise. Importers are not dummies anymore (I explained in an article why U.S. corn export marketing was changed forever last fall…might be time to bring it back out).
Soybeans: One wave lifts all ships? Actually like one flooded river (Sept.) lifting all months (new crop) even as crop weather looks decent here. The deal for the September of course is a squeeze due top tight supplies AND talk there will be rain-delayed early harvest. Hey, maybe it’ll extend into the October period and squeeze November! I’d like to see that but cannot bet on it. Crop tour results?
Wheat: Last week’ high $5.71 nearly matched and part of the rally taking out nearby t/l resistance. StatsCanada wheat number was bullish but in the global scheme of things. I thought it would have a limited effect on our prices. Might be wrong.