Though we don’t like trading seasonals blindly, we can’t ignore that this renewed bear focus for cattle does fit with the “norm” for this time.
The USDA will be releasing its December monthly supply/demand report on Tuesday (WASDE).
We would recommend producers sell the carry anytime beans are over $10.00.
The trading range in December is getting even smaller than what it has been
Cash hogs, as measured by the Lean Hog Index, are now at $69.
December corn futures will have a hard time separating far from $3.50 per bushel until a larger-scale piece of news is seen.
Soybeans ended the week on a bullish note as follow-through buying from yesterday continued Friday.
The trade could quickly turn attention forward to the October 12th Supply and Demand report.
Today's Cattle on Feed report is a bearish surprise. USDA’s monthly survey of feedlots found 2.6% more placements in August against the trade expectation of a 2.1% decline.
The trade has constantly disagreed with the government thoughts on the size of the soybean crop. If yields are lower, this could ignite another round of buying.