Grain and Oilseeds Wrap Up
Corn
Corn prices traded in positive territory for most of the daytime session but it was clear that buyers were reluctant to jump in with both feet just yet. The December contract fell to within a penny of key support around $4.40 early this morning and that will be a must hold area. Consider the long side of the corn market from current levels with a lot of potential catalysts still in play.
Soybeans
July soybeans extended their downside move on nickel losses and appear to be closing in on long-term uptrend support that sits within the $10.90 to $11.00 zone. Favorable weather forecasts, the chance that some acres were switched from corn to beans and limited soybean purchases from China will have us looking at rallies as another opportunity to get defensive again.
Wheat
July Kansas City wheat saw double-digit gains a few times throughout the day while Chicago wheat struggled to hold in positive territory after seeing gains of 8 to 9 cents. The July Kansas City contract will try to hold support around $6.20 while the Chicago contract is seeing downside momentum diminish around $5.80. Winter wheat harvest pressure will limit upside momentum, but harvest results will likely put a spotlight back on production problems to keep a footing under prices.
Cattle
August live cattle opened with $1.50 gains but abruptly reversed course to finish with losses of more than $5.00. Feeder cattle started with a $5.00 rally before reversing to $3.00 to $4.00 losses. A few more screwworm cases in the US failed this time to spark additional strength to the market. More screwworm cases will likely show up, but the government has been quick to report that the situation will likely be kept under control. Both the live and feeder cattle markets challenged the upper end of downtrend resistance on the morning rally with both contracts looking like a downtrend could be maintained after failing to follow through on last Thursday’s strength.
Hogs
Gains of more than $2.00 on the open didn’t last long in the hog market today. Friday’s losses dashed hopes of a trend reversal to the topside and now we have hog prices setting fresh lows for their current downtrend. Pork cutout values had seen a small uptick recently but still haven’t deviated far from $100. The July hog contract hasn’t wanted to spend much time below $100 lately and will need a quick turnaround to calm fears that more losses may be in store.
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