Grains and Livestock Recap (8/5)
Corn: After a dismal start to the trading week, the bulls finished stronger, suggesting some follow-through technical buying interest from the speculators early next week. Traders will continue to monitor vessels loaded with Ukrainian grain in the Black Sea region.
Soybeans: November futures were able to hold steady in overnight trade, continuing to pivot around the psychological $14.00 mark, ultimately reaching $14.28 3/4 before setting back. Momentum into the morning hours faded as beneficial rains are expected over the western Corn Belt, an area that has been consistently dry throughout the growing season.
Wheat: The wheat complex continued sideways-to-lower on the week as traders kept a keen eye on the progress of resumed exports of Ukrainian grain out of Black Sea ports. So far, corn has been the primary commodity shipped from the ports of Odesa and Chornomorsk, with the expectation of new-crop wheat exports to begin in September.
Cattle: Beef packers apparently relied heavily upon previously purchased cattle, contracted and formula-based animals to fill out their slaughter schedules during late July, hoping to put pressure on cash prices. The sizeable cash gains (around $1.50) posted this week imply that didn’t work, which in turn suggests the upward price pressure will persist through mid-August.
Hogs: Despite several pork plants granting their workers a floating holiday on Monday, this week’s preliminary hog kill reached 2.34 million head. That topped the week-ago figure by 49,000 (2.1%) and the year-ago total by 13,000 (0.6%).