December Corn Tests Resistance as Cattle Markets Hit All-Time Highs
The grain and livestock markets are showing diverging trends as December corn flirts with technical resistance, while October live cattle and feeder cattle post record highs.
“December corn stalled just short of that 50-day moving average. We do still see that pre-harvest low near 390 holding through the harvest.”
As harvest season approaches, analysts suggest that the recent short covering in corn has likely run its course.
“Short covering, we think, in corn looks to have run its course for now, in our view, open interest down over 70,000 contracts. But sellers aren’t going away, regardless if you believe pro-farmer or USDA, a big crop is at the doorstep.”
With both Pro Farmer and USDA projecting robust yields, pressure remains on corn futures. However, a strong layer of support appears to exist around the early August lows.
“We see a lot of buyers showing up if December would retrace back to those early August lows near 390, but 420 on the top side. More likely, if USDA would back off their 188 number on the 12th of September.”
The USDA’s September 12 WASDE report could be a key market mover. Should the agency revise down its 188 bushels-per-acre corn yield estimate, bulls may have a window to regain momentum.
Meanwhile, in the cattle markets, optimism continues to drive prices higher.
“October live cattle, October feeder cattle making new all-time highs this week. It shows that bulls remain in control. Feedlots are asking some two, three dollars higher, and it appears they’ll be digging in for better money.”
With tight cattle supplies and robust beef demand, feedlots are holding out for premium pricing. The bullish sentiment underscores ongoing strength in the protein complex, even as grain prices face harvest pressure.
This dynamic between rising cattle prices and stagnant corn futures will be closely monitored in the weeks ahead, particularly as farmers assess marketing strategies during harvest and feedlot managers negotiate fall contracts.
Audio Reporting by Mark Oppold for Southeast AgNet.