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.
Crazy week of reports. From the January 10th report, Phase One, USMCA…but still beans had a rough week. Shows volatility & one needs to be prepared. Last 60 days we have been in a tight range. Ethanol margins remain tight…China even mentioned ethanol in Phase One. South American weather & current harvest. Hogs could see the boost from the trade deals. There is money to be made in the cattle market right now.
Grains saw a bounce in the corn, China deal still needs to be inked out. South America has good weather in Brazil-putting added pressure to bean demand, Argentina has been hot & dry. Soybeans have had some oversold levels. Bullish to the beans. Basis to remain strong going into 2020. COF report out on Friday & cash cattle thoughts.
China & the status of the agreement & 50-billion-dollar trade talk. USMCA vote. Weather in South America. Timing of Chinese purchases…does it include ethanol? How much of the rally a rally vs. a money flow? Holiday feel set into the markets. Winter wheat concerns looking at some dryer weather. Cattle & hog fundamentals. Waiting for cash cattle. Is cattle weights a concern?