Grain markets are higher across the board with corn pushing to new contract highs and the soy complex moving closer to recent highs with overnight gains. Traders are waiting for the February WASDE later Tuesday morning which should be supportive to recent gains. Soybeans on China’s Dalian Exchange were up 1.57% while soybean meal was up 0.3% and corn was down 0.71%.
Live cattle futures performed well again Monday with contracts posting another higher high and higher low. Futures pushed through to new highs again with April at the highest level since Jan. 21, 2020. The anticipation of increased beef demand as restaurants reopen or increase capacity following strict rules, will keep support under the market. Packers or feedlots did not post any bids or offers, preferring rather to get a feel for the market. Feedlots most likely will be asking higher prices due to strong futures prices and decent boxed beef prices.
Hog futures continued their march higher, posting a similar chart pattern as cattle with higher highs and higher lows. This positive chart action along with new contract highs keeps traders stimulated and willing to add to their long positions. Cutout were higher on good demand. Consumers want to purchase meat and pork because it is still a great buy. The Commitment of Traders report showed funds were net buyers of 8,206 contracts, adding to their positions now totaling 51,353. Traders are friendly to the market and as long as underlying fundamentals provide support higher price should unfold.
Mixed trade in global equities overnight with U.S. futures pointing toward a slightly lower open Tuesday. Financial media sources are abuzz with inflation talk this week after five and ten-year inflation breakeven expectations rose to 6-1/2 year highs on Monday. This should be supportive to the commodity sector as a whole as investors look to physical assets to store value.
Farm and Ranch Director Jesse Allen has our full update: