Comments: Easy answer for the rally: cash cattle will trade up $1-2.00 this week. Tougher answer: August expires tomorrow, beef lower to sharply lower (select) midday. Nonetheless, October had a big upside breakout from the current range helped by its discount to the live when August expires.
Comments: Dragged higher it seems from the cattle rally. Nonetheless, October did hold yesterday’s low and added some technical buying interest. Volume looked light an gains were limited by weak pork and live markets. Major Interior markets all unquoted; cut outs fell just slightly amid a slow pork trade.
GRAINS & OILSEEDS:
Corn: Moderate gains in apparent light-side volume. Certainly seemed spillover from the wheat pit then beans/meal. New crop exports also routine and as old crop faced another net reduction; weather too wet?
Soybeans: Fun in the September contract as the big guns decide they should lift their shorts due to not finding beans or longs exit because bean will become available for export. November was non-plussed by it all on apparent light shortcovering. New crop export sales large while old crop another net reduction.
Wheat: Modest gains in the end. Shortcovering was apparent again for end month while some buy into the Russian/Ukraine renewed conflict as supportive; weekly export sales did improve about what would be a ‘routine’ level. I did read where Russia and Brazil are getting back on track for Russia renewing exports to them as Brazil drops their import duties on them (suggests Brazil will buy their rather recent U.S. buys).