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Grain and Oilseeds Wrap Up
Both the July and December corn contracts were down 30 cents for the week. July soybeans were down 65 cents for the week while November beans were down 52 cents. Both the July Chicago and Kansas City wheat contracts were down about 30 cents for the week.
The corn market showed no signs of hitting the brakes on its plunge to the downside. July corn broke to new contract lows yesterday and the next downside target sits at $4.05, where a gap on the continuation chart would be filled. December corn moved to within about a nickel of its contract lows today that sit near the $4.40 area. It won’t take much for a rebound at this point, but extended forecasts aren’t getting anyone excited about weather concerns with warm and wet conditions expected for a few weeks.
July soybeans extended their downside move on losses of about a dime. The breach of key support that had been in the $11.60 to $11.70 area puts the next downside target within the $10.80 to $11.00 zone. November soybeans don’t look any better, with room to continue their latest downward momentum to the $11.00 to $11.20 zone if positive news doesn’t arrive soon.
The July Chicago contract is trying to hang on near $5.80, which is the level that caught the last major down move in early April. July Kansas City wheat looks like it might try to find a bottom within the $6.00 to $6.20 zone. Abundant world wheat supplies limit chances for a major recovery rally, but dismal harvest results in western US growing areas should help put a floor under the wheat markets.
Cattle
August live cattle were $2.40 cents higher for the week and August feeders were $4.75 higher for the week.
August live cattle reached $3.50 gains and August feeders rallied $5.50 but strength would erode in the second half of the day while sharp losses in the stock market added some pressure. Screwworm in the US heightens chances that the cattle markets can reach new highs again as concerns about tight supplies will remain in focus. August live cattle need to sustain a move above $243, an area where the 20 and 50 day moving average converge for a chance to revisit previous highs above $250. August feeder cattle closed the gap that had been left open on the chart with their rally above $356.50. August feeders need a breakout beyond $362.50 to open the door to a challenge of recent highs set around $375.
Hogs
July hogs were down $1.00 for the week.
July hogs showed some promise the past few days but failing to breakout beyond $102 and a fresh low close today for the downtrend leaves questions in place about upside potential. The July hog contract looked like it wanted to avoid spending much time below $100.00, but now needs a quick recovery. Pork cutout values have been strengthening, but that’s about the only positive news that has surfaced lately. If another trip below $100.00 ends up being short-lived, take a look at option strategies that will have you participating in an upswing over the next few months.
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