Markets Now with Michelle Rook

Grains are mixed early with wheat seeing short covering follow the European market strength. Darin Newsom, with Barchart, says he's watching money flow in the grain markets and thinks the funds could start covering their short position if the stock market continues to show weakness.  Despite higher wheat, corn is struggling under the weight of a big crop.  Soybeans are mixed seeing bull spreading with export business finally accounced to China and unknown this morning.  Cattle see a short covering pop but the key is whether or not it can hold into the close. 

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The cattle markets end lower again on Thursday.  Scott Varilek with Kooima Kooima Varilek says live and especially feeder cattle futures and have had a sizable correction from the recent highs.  It's come in tandem with the pull back in the stock market and underlying recessionary fears which have caused fund long liquidation.  If the stock market stabilizes how much of a recovery can we expect in the cattle market?  

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Grain and livestock mostly lower on Wednesday, except live cattle.  Matt Bennett, AgMarket.Net. says grains saw more fund selling with corn and soybeans weighed on by bigger yield ideas in the upcoming WASDE, favorable weather and the lack of China export business. Will USDA offset higher yield with lower acreage and if not is there more price pressure ahead? Live cattle saw a slight bounce but can the market stage a recovery until the stock market stabilizes and have feeder cattle done too much technical damage?    

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Cattle are higher early continuing to recover with the stock market but how much can cattle recover after the technical damage done on the charts?  Scott Varilek, Kooima Kooima Varilek, says demand is still holding together so it may be a function of the cash market.  Hogs continue to chop and are lower today with lower cutouts.  Corn and soybeans continue to see selling pressure with new lows in soybeans on higher yield expectations in the upcoming WASDE and no confirmation of China soybean business.   

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Grain and livestock closed mixed Tuesday.  Vince Boddicker, Farmers Trading Company, says corn and soybeans could not extend gains for a third day running into chart resistance and with strong crop rating and favorable weather.  Wheat saw light short covering and a boost from higher Russian wheat prices.  Live cattle ended mixed trying to consolidate with a stable stock market, but feeder cattle made new lows for the move again with more technical selling on ugly charts.  Lean hogs saw a short covering bounce with help from higher cutouts at noon.  

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Grain markets start off lower Tuesday but Kent Beadle of Paradigm Futures says corn has found some buying interest and short covering for a third day.  Meanwhile soybeans are weighed on by strong crop ratings and the lack of China business, plus lower bean oil.  Wheat futures are getting pressure from the higher dollar and spring wheat harvest.  Cattle are trying to recover with the higher stock market and hogs are following.  

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Livestock ended sharply lower as a risk off selloff in global equity markets spilled over to cause fund long liquidation.  Chuck Shelby, Risk Management Commodities, says grains started off lower but with funds short in those markets they quickly covered shorts and unwound some of that position to offset their losses in the stock market.  Shelby talks about what all this means longer term for the ag markets, especially if recession talk continues.  

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The risk off selling in U.S. and global equity markets start the grain and livestock futures all lower.  Brad Kooima of Kooima Kooima Varilek says the protein sector is down with ideas of slower demand.  The cattle market selloff started late last week and currently the October live cattle are below the 100 day moving average.  Cash was steady to $2 lower so what will the plunge in futures mean for cash cattle trade this week?  Grains start lower with risk off selling but corn is trying to claw back and is above $4 on the December but can it hold?  

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Grains end higher on Friday mostly due to short covering as the markets were oversold.  DuWayne Bosse with Bolt Marketing says it will be tough to build on it starting a new week with growing yield ideas and lack of a serious weather threat.  Soybeans did see 7.4 million bushels of new crop export business to China which was supportive and wheat got a boost from a sharply lower dollar.  However, livestock futures set back with the collapse in the stock market and some long fund liquidation in the cattle.  Feeders did chart damage, while October live cattle at least came back to close above the 100 day moving average.  

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Grains see some end of week short covering but Tomm Pfitzenmaier of Summit Commodity Brokerage says the 7-day forecast also looks a little hotter and drier which is helping out.  China bought another 7.4 million bushels of new crop soybeans Friday which is supportive.  Plus, he thinks the melt down in the stock market may be bringing some money into the grains but is it enough to get the funds to blow out of their short positions?  Not likely he says and Friday's bounce in the grains may not be sustainable. Cattle are lower with lower cash and cutouts and the lower stock markets and hogs are following.  

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