USDA reports fail to spark buyer interest — USDA’s reports Friday morning were generally as expected to a touch friendly, but markets failed to respond with price gains. Concerns U.S./China trade negotiations won’t be completed by March 1 continue to hang over the markets. South American weather is also expected to be generally favorable through mid-February, with rains forecast for dry areas of Brazil and needed drying across northern Argentina. Wheat found little support from Egypt buying two cargoes of U.S. SRW supplies. Cattle futures rebounded from the previous week’s topping signals, suggesting the market may make another run to the upside amid a strong cash market. Given poor feedlot conditions and strong consumer demand for beef, traders want to keep futures at premiums to the cash market. Lean hog futures extended their prolonged price slide on weak cash and product prices, along with concerns any buying of U.S. pork by China will come later rather than sooner.
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