Early on Tuesday, we see mixed action throughout grains with soybeans holding near highs once again. Corn is mixed with new crop slightly weaker early this morning. Our focus turns to Friday’s WASDE numbers as the next milestone in the road. It’ll be interesting to see what USDA does with those April numbers and how it affects our trade. One has to expect choppy and volatile trade to continue until then. China’s Dalian exchange was showing no trades early Tuesday. July common wheat on China’s Zhengzhou exchange was down 4.9%. June Malaysian palm oil is trading up 1.7%.
Both feeder cattle and live cattle futures pushed to new highs in most contracts. The anticipation for higher cash is giving traders confidence to add to already long positions. Substantially higher boxed beef prices keeps solid support under the market. There is no sign of demand letting up. Seasonally, demand should improve and prices should increase.
Only April hogs were able to close higher Monday, but not before May through July contracts posted new highs. There is little concern of the market turning bearish. Cash was a bit lower and cutouts were down slightly Monday, but the overall trend is higher. Futures took a breather Monday as traders likely decided to bank some profits. Hogs supplies are expected to tighten, resulting in packers remaining aggressive.