USDA Report Day

The February crop report is not known for being a market moving report. Analysts are looking for an increase in corn exports, bean exports to be lowered just a fraction and not much for other changes.

Cattle – Support seen Monday was not seen yesterday, cash bids starting steady with last week

↔ Yesterday’s PM BB was choice +0.91 select +0.82 packer BE at 184.28, packer cushion $6.06

↓ Speculative support seen Monday was not seen yesterday, for now it should not be counted on

↑ Fundamentals are slowly catching up with Monday’s bounce, BB is slowly grinding higher

↔ First cash bids were 178 in NE yesterday, steady with last week’s trade, implies $1 higher cash trade

↔ The above cash bid is not supportive to futures because futures are still priced $3.50 over cash

↑↓ It is possible that we could see cash bids move up another $1 while futures set back another $1 to

meet in the middle, then the cash/futures price difference would be minimal

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