The month of May is known for price volatility.
The markets made an impressive move upward then faded.
The trade doesn’t believe the fundamentals back a rally.
A slowdown of corn planting could bring the pace back to normal.
This week saw continued active wheat trade, but price action was mostly in a sideways pattern.
Cattle prices have had a rough spring. After peaking in late 2014 and early 2015, prices have been adjusting downward from very lofty peaks.
This week was a big one with a large 7.72 decline for June live cattle futures and 9.52 break for August feeder cattle.
A recent report by Rabobank estimates that South America is set to increase its beef exports by 11% in 2016.
Pork producers are reducing farrowings in 2016. That means pork supplies will be somewhat less than had been anticipated and that hog prices will be somewhat higher.
June lean hog futures lost 3.05 this week. With cash hogs now stabilizing at $66 on the lean hog index, many traders are taking out some of the premium in futures.