Grain prices start the day high. May 2, 2024

Grain prices are higher this morning as technical strength and friendly headlines aid the bull camp. July corn has pushed to the highest levels since the March 28 Planting Intention report day. Wetter forecasts for the Midwest are also fueling the rally as traders are growing more concerned about the pace at which the U.S. crop will get planted. It’s worth noting that traders like to see 50% of the corn crop planted by May 10. If we get to that point and are still behind pace, the funds that are still short corn may reconsider that position.

July soybeans have pushed to the highest level since April 10 this morning. The next overhead target for the soybean bulls is the April 8 high at $11.93. A strong close above this line could propel prices toward the March 21 high at $12.27. Wheat futures are in the green this morning after a mixed day on Wednesday. CBOT wheat is quietly higher after trading 16¢ higher at one point. KC wheat is trying to recoup some of the losses from earlier in the week while spring wheat is dangerously close to breaking out to highs seen in early February.

Livestock futures are higher on the news that no traces of H5N1 were found in ground beef samples. Feeder cattle are up $2.75 to $3.35 while Live cattle are up $2.05 to $2.75. Lean hogs are 55¢ to 90¢ lower in the nearby months while December hogs are up 45¢.

The U.S. dollar index is up 0.10 at 105.64 this morning. Traders will be watching the 20-day moving average closely as the bears have tested this line of support four out of the last five trading days. Crude oil continues to slide lower as global tensions appear to be easing. Look for support in crude oil near $78.41.

Tags: live cattle, feeder cattle, lean hogs, corn, soybeans, wheat, futures