Once corn hears when the first GTE rating will be released, we can expect at least some pre-buying of that report expecting a low starting number.
Anywhere in the +$77 range via summer futures is a valid price to work from.
The days of arguing that hog futures are sharply underpriced are over.
Our in-house pricing model suggests this market is on the path to hit $8.84 for the early-summer low on the November contract before a summer bounce.
Exports are running 20% higher than last year while beef output is only 2.9% higher than 2016.
In the short-term, the trade will react to Monday’s weather maps as well as what is expected for the planting pace.
Pork supplies are expected to dwindle over the summer months. This should help keep support under the market.
Less selling of soybeans in South America, more soybean acres in the U.S., creates May fireworks scenario.
On Monday, weather and fund activity should be weighed equally to determine direction for the week.
A top in this market is likely due anytime now, this marketing firm believes.