It was a sea of red in the ag markets with grains and livestock both finishing the day under heavy pressure.
December corn futures broke to their lowest levels since September of 2021, settling the day 4 ¾ cents lower to 471 ½. Despite the new lows for the move, the RSI (relative strength index) is only at 38 which is still above what most technicians refer to as oversold.
November soybeans broke below the 200-day moving average which accelerated the selling pressure, some of which was likely long liquidation. At the close the November contract was 23 ½ cents lower settling at 1316 ¾. All eyes are on the 100-day moving average which comes in at 1304, just above the psychologically significant $13.00 handle.
December Chicago wheat had a nice move higher on Friday but couldn’t use that to its advantage to start a new week. At the close December Chicago wheat futures were 13 cents lower to settle at 591 ¼, erasing all of Friday’s gains and then some. Seasonally we are at a time of year where the market starts trying to carve out low. If that plays out this year or not is still up in the air.
December live cattle overtook October last week in terms of volume, so that will be our focus going forward. The December contract had a strong end to last week’s trade but failed to find any follow-through to start the week. At the close the December contract was 82 cents lower to settle at 191.00.
October feeder cattle futures made new contract highs on Friday but fell flat on its face in today’s trade, erasing all of Friday’s gains and nearly half of Thursday’s gains. At the close the October contract was 3.52 lower, settling at 260.05.
December lean hogs overtook October in terms of volume last week. October managed to squeak out a 12-cent gain on the day while the other months finished in the red. At the close the December contract was 67 cents lower to settle at 74.42.