In a normal market environment this would be a very bullish Cattle on Feed report, unfortunately we are in anything but a normal environment, so it’s taken with a grain of salt.
Lower highs for Corn futures last week while July Wheat futures broke down on Friday.
Rumors have been swirling that China was in the market for some big corn purchases. That, coupled with today’s option expiration has provided support in prices over the last few sessions.
Cocoa futures have some fundamental news this week that normally would be strong enough to move the contract.
June Live Cattle future took some heat yesterday but manage to close off the lows; Aug. Feeder Cattle managed to rally into the afternoon session.
Corn futures manage to rally into the weekend, only to give it up in the Sunday night/Monday morning trade. Friday’s COT) report showed funds holding a net short position of 137,571 contracts.
Corn tried to stage a relief rally yesterday, but the attempt fell short, with no conviction from the buy-side. .
Livestock markets were all over the place yesterday as rumors of additional plant disruptions circulated, ultimately leading to selling pressure in the final minutes of the session.
While market participants see nothing but bad news while the market is closed, we were able to chew through that bearish sentiment and saw a more constructive trade yesterday.
Corn futures spend the majority of last week’s trade consolidating, with little new news to break the market lower or spark a short-covering rally.