Grain markets are mixed with corn and soybean oil firmer while wheat and soybeans are weaker. The other markets we continue to watch with interest are the Dalian commodity markets which saw another night of heavy selling. The sustained weakness this week begs the question of whether African Swine Fever is growing into more of an issue than is being reported on in China. Even Dalian soybean oil wasn’t immune to the selling, closing off 1.50% overnight. Soybeans on China’s Dalian Exchange were down 3.87% while soybean meal was down 3.53% and corn was down 1.02%. The energy complex is higher overnight while the U.S. Dollar Index is weaker.
April cattle futures could not hold onto gains of the previous three days as cash trading took place Wednesday at steady prices in the South and lower in the North. The anticipated spring price rally may be a bit later in coming, if at all. June futures are near the same price as April with August trading lower showing little optimism through the summer. Cattle need to be moved and packers may be able to obtain sufficient supply without having to bid up.
Hogs continue to reach higher with May through October contracts again making new highs Wednesday. Underlying cash continues to support with price increasing on the National Direct Hog Report. Futures are again reaching into overbought status, but that will be meaningless if packers continue to remain aggressive. Problems with African swine fever in China continue to circulate in the news. Their desire to rebuild their hog herd has been an uphill battle and will take longer to accomplish. This should keep them as buyers for the foreseeable future.
Farm and Ranch Director Jesse Allen has the latest: