Quiet start with the livestock. Tone of the beef is just okay…macro’s have Brad concerned just a bit. Cash cattle. Average weights are disturbing. Year on year comparisons come in higher. Is the market tired for the cattle? Hogs continue to torment. New virus in China-how is that going to affect the markets & heading into the Chinese New Year Celebration. Beans took it in the shorts-is it weather in South America, corn did better but problems talked about it in a variety including wheat.
USDA WASDE Report. Nothing friendly on the grain report. Unicorn type of day! Brad explains. How do the basis numbers look? Ethanol/DDG’s & China. Cattle prices were higher with the hopes that the cash would see some higher Friday trade numbers. Macro’s for the cattle not great. Middle of a big fund role. Negative side of the market is the cut-out value-cutting back on Saturday kills. No real threat in the weather-does that make you nervous? Hogs still caught in the same trading range.
Cattle saw a massive amount of fund buying on Friday. Interesting that beef had the biggest reaction to the news about China. Already some longs going into Friday. Fundamentals of the cattle-weights are higher than a year ago. Producer is asking for higher money. Could we see some higher money in this last full trading week of 2019? Is there some bullish feelings in cattle & are hogs too cheap? Corn to see a rally? Beans take a jump in the markets. Wheat is the easiest most exportable item. Some general comments about China.