Grain markets are higher across the board with gains led by soybean oil and soybeans, although they too have come off the highs with the energy complex setting back slightly. Soybeans on China’s Dalian Exchange were up 2.56% while soybean meal was up 1.49% and corn was up 0.86%. A strong start to the week ahead of the USDA March WASDE report.
Mixed equity trade around the globe overnight with U.S. futures pointing toward a slightly lower open Monday morning. Earlier Sunday evening, the energy complex rallied sharply on the weekend news of Saudi Arabian energy facilities being attacked by Iranian-backed fighters from Yemen. The U.S. Dollar Index is solidly higher overnight, rallying for the fourth session in a row and trading to the highest level since mid-November. Gold and copper are weaker overnight while silver futures are posting gains.
At least it was a good close for the week for both cattle and hog futures. No definite trend was established for cattle last week; futures moved mostly in a sideways pattern, with the exception of April, with a lower high each day of the week. Generally steady cash prices were recorded for the South with prices lower in the North last week setting a negative tone for the market. Traders will ponder whether steady prices will again be achievable this week or if cash prices last week could be a foretaste of what may develop.
It was no surprise hog futures were able to generally close higher on Friday due to a rebound of export sales from the previous week. The uptrend still remains intact even though there have been ups and downs with cutouts. However, the significant drop the National Direct price on Friday may be a warning shot over the bow. Packers may not be as aggressive this week and may be only willing to bid steady prices. Cumulative export sales for the year total 668,688 metric tons (mt).
Farm and Ranch Director Jesse Allen has the latest:
