Grain markets are weaker with the exception of May and July corn futures as the 5.50 level takes over as a magnet for the May contract in much the way it did for the March contract. We see moderate losses throughout the new crop corn, soybean and wheat futures. Soybeans on China’s Dalian Exchange were up 1.58% while soybean meal was up 0.78% and corn was up 0.48%.
Global equity markets were higher overnight, although U.S. futures are suggesting a modestly lower start Tuesday as traders await fresh data on retail sales. The energy sector is weaker overnight with spot crude oil prices looking at their third straight lower close. The U.S. Dollar Index is higher overnight.
Cattle futures were able to close higher across the board Monday with some triple-digit gains scattered across both feeder cattle and live cattle contracts. Support certainly did not stem from boxed beef as they showed a significant decline. It seems that the winter storm and a forecast for significant rains over the next two weeks may have underpinned the market. Traders like to trade the news and events even though they may not have lasting impact on the market, it does provide volatility, which in turn, provides opportunity to make money.
Hog futures were bound to take a dip in price as the market became overbought. Packers remained aggressive Monday, which brought futures off their lows by about $1.00, keeping the uptrend intact. Pork cutouts remain very strong and that strength along with higher cash will keep traders friendly to the long side of the market. It certainly appears pork prices have not found consumer price resistance, which is keeping packers bidding higher.
Farm and Ranch Director Jesse Allen has the latest: