Grain markets are mixed overnight with row crops and products weaker while wheat contracts post modest gains. The tone which has been set to start the month of March is a bit concerning, especially with how much length the speculative community is carrying in the ag markets. Soybeans on China’s Dalian Exchange were down 0.6% while soybean meal was down 1.11% and corn was down 0.43%.
Mixed equity trade around the globe overnight following the sharp rally in the United States Monday which saw the largest single day gains since last June. Energy markets are flat overnight with spot crude oil hanging above the 60.00 per barrel mark after two consecutive days of heavy selling. The U.S. Dollar Index is firmer overnight and managed to trade up to its 50-day moving average before setting back slightly.
The cattle complex took it on the chin again Monday. Technical selling gripped the market as technical support was broken and stops were triggered. This makes two days of substantial selling. Fund liquidation usually runs its course in two to three days and then settles down. That does not necessarily mean the liquidation is complete, but it may slow down.
Hog futures were able to post a rebound, keeping the uptrend intact. Cash was able to show a slight gain even though a substantial amount of hogs have already been purchased. Fundamentals remain bullish, but there is some growing concern over the lofty price.
Farm and Ranch Director Jesse Allen has the latest updates: