Grains restart rally; livestock rally 'feels tired'.

Pro Farmer, July, 2006

Grains restart rally; livestock rally 'feels tired'--Corn, soybean and wheat futures posted weekly lows to start last week and generally worked higher ahead of the June 30 USDA reports. USDA's data sparked another rally for corn and soybeans, putting both markets in position to post upside reversals on the weekly chart.

After exiting short-term hedge protection in corn, we're willing to allow the market to move higher before increasing sales ... and may advise buybacks and long feed coverage if weather turns hot/dry. Bean growers should be ready to increase sales soon as prices move back up to the top of the choppy price range. Wheat growers must also be ready to reown a portion of cash sales. After spiking higher to start the week, live cattle and lean hog...

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