Winter Wheat Conditions Continue to Slip

November 6, 2012 12:46 AM
 

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Overnight highlights. Following are highlights of overnight trade (as of 6:45 a.m. CT) and opening livestock calls:

Corn: Mostly 4 cents higher. Corn futures are seeing a lift from short-covering following yesterday's losses. Weakness in the U.S. dollar index is lifting crude oil and gold futures and that buying is spilling over into the grain markets. Otherwise, there's no fresh news to report. Choppy price action is likely to continue this week as traders even positions ahead of Friday's November Crop Production and Supply & Demand Reports.

Soybeans: 10 to 15 cents higher. Weakness in the U.S. Dollar index has spurred some short-covering in the soybean market. Following yesterday's losses, the market needs a dose of short-covering to avoid doing any technical chart damage. January beans respected the $15.00 level yesterday and again in overnight trade. Meanwhile, buying was limited overnight by expectations for better rains in northern Brazil this week.

Wheat: 5 to 6 cents higher. Wheat futures are firmer this morning on spillover from neighboring pits, as well as yesterday's crop condition report. The report showed further deterioration in the winter wheat crop in the U.S. Central and Southern Plains, as most of the region missed out on any meaningful precip last week.

Live cattle: Mixed. Futures are expected to be mixed as traders wait on clearer direction from the cash market. The boxed beef market started the week mixed, with Choice values up 28 cents and Select down 25 cents. Movement at 172 loads was strong, but given the fact packers have been working with negative cutting margins for quite some time, they will be resistant toward raising bids.

Lean hogs: Mixed. Futures are expected to be mixed, but may favor the upside after pork cutout values improved 93 cents yesterday. The cash hog market is expected to be mostly steady today, but some lower bids are still possible as supplies are plentiful. Profitable margins give packers incentive to keep kill lines running as full as possible.


 

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