Markets Now with Michelle Rook

Jim McCormick with AgMarket.Net says corn and soybeans rally on weather and technical buying.  Will the funds keep buying and covering their near to record short position to keep prices moving higher or will farmer selling cap a rally?  Wheat falls with the bigger spring and winter wheat yields. Cattle work in higher cash and GDP, while hogs consolidate after hitting chart resistance.  

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Livestock are mostly lower early Thursday except for nearby live cattle.  Scott Varilek of Kooima Kooima Varilek says cash cattle trade has been steady so far in the South at $188 and the August futures are trying to converge so that has led to some bull spreading.  Feeder cattle are under pressure with higher corn and a cooling cash index.  Hogs are consolidating despite strong exports.  The market has had a nice rally that was pushed by higher cash and cutouts so its taking a break.  Row crops are higher on fund short covering and the addition of some weather premium, plus demand has started to pick up with a flash sale of nearly 10 mb of new crop soybeans.

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Corn and wheat end mostly higher, except spring wheat.  Shawn Hackett, with Hackett Financial Advisors, says funds have been covering shorts on weather concerns but today markets ended off session highs on farmer selling.  Spring wheat also corrected with the Wheat Quality Tour showing record yields on Day One.  Soybeans end lower also seeing hedge pressure and profit taking with bearish financial markets and the inability of November soybeans to get above the 20 day Moving Average technically.  Cattle end mixed to lower consolidating in the face of negative outside markets.  

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Grains are mixed early Wednesday.  Allison Thompson with The Money Farm says soybeans consolidate with farmer selling after a weather and releif rally.  While corn and wheat are higher on short covering, the lower dollar and improved demand.  Live cattle extend gains with the futures discount to cash.  

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Corn and soybeans continue to add weather premium and funds are covering shorts.  Alan Brugler, Brugler Marketing, discusses how much risk premium is warranted and how much of a rally row crops could see if funds covered their massive short position.  Wheat consolidates with a stronger dollar and global competition.  Cotton tanks again with improved crop conditions and slow demand.  Cattle extend gains with cash holding together and the futures at a discount.  

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Corn and soybeans are extending yesterday's gains on hotter, drier weather forecasts and concerns that will cut into crop ratings.  However, Kent Beadle with Paradigm Futures, also thinks its tied to politics.  Wheat sets back initially with a higher dollar but then recovers.  While cattle are under pressure with higher corn and having priced in the bullish placements in the Cattle on Feed Report.  Hogs are to the plus side pushed by a contraseasonal rally in cash and cutouts but Beadle expects it to be somewhat short lived as producers use it as a hedge opportunity.  

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It has been rare lately, but grain and livestock futures all ended higher on Monday.  Mike Zuzulo, Global Commodity Analytics, says grain markets were adding risk premium in on U.S. and global weather threats.  Plus, the funds are near to record short and so they covered some of those positions.  Cattle futures got a boost from the bullish placements number in the Cattle on Feed Report, which was down 7% but can the market build on it with seasonal demand weakening?  Hogs also rallied with the rest of the complex but also followed the recovery in cutouts and the higher Lean Hog Index.  

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Brad Kooima of Kooima Kooima Varilek says cattle are higher in reaction to the positive Cattle on Feed Report placement number, which came in below expectations.  Cash trade this week will be the key to keeping the rally going but he says tight numbers and the lack of negotiated business last week should provide some leverage.  Hogs are also up in a risk on day and with news of China lowering short and long term interest rates driving ideas of pork exports.  Grains higher on the China news but also a hotter drier extended forecast and funds leaning near to record short. 

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Grains end mixed Friday with corn and soybeans losing early gains and ending lower for the week.  Garrett Toay, AgTraderTalk, says grains are getting low enough to stimulate demand but have an uphill fight with favorable weather and funds short.  Cattle continue to consolidate ahead of the Cattle on Feed Report and steady to lower cash but at a discount to futures.  Hogs were higher on continued corrective buying and higher cutouts but how Toay says a bigger recovery will be difficult.  

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Live cattle are mixed trying to recover after a sell off Thursday.  However, Scott Varilek of Kooima Kooima Varilek says cash has been steady so far in the South and futures are at a discount which is supportive.  Hogs are bouncing with technical buying and higher cutouts.  Grains are also seeing a technical bounce with some support in soybeans and meal on recent export business. 

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