In the last newsletter I said "solid support should be found at 1335-1340". That occurred today with beans reversing off of a low of 1338.4. A close below that value of 1335 would create a washout to 1280-1290.

 

Again Minneapolis wheat held the 790-800 value and bounced. Until spring rains arrive in the Norther Plains, HRS should hold 770 on a closing basis. Early planting is great for big crops, but if its 81 degrees in March like in 1988, 94 degrees in April (like 1988) won't be good.

Gold Intra-day Chart

Gold continues the decline we warned could happen at the end of February. Failure to climb back above 1710, as we discussed early last week, is bringing in further liquidation. 1670 is now resistance. A drop to 1600 is expected, with 1570 not out of the question either.

Live Cattle

Feeder Cattle

Cattle futures continued with choppy consolidation today. There was some decent cash trade yesterday, 126 in the South and 127 in the corn belt. Choice beef cutouts got pounded over $2 yesterday and traded steady today in the 189 area. That didn't help packer margins, now at $55 per head in the red. Futures have had two up days now, and tomorrow will be the open of the 3rd day. If it gets sold, that would indicate some more downside. If it gets bought, the bottom of the trading range is most likely in.

Estimates for tomorrow's Cattle On Feed report are as follows: On Feed 102%, Placements 103%, Marketings 100.5%.