Ahead of the Open (VIP) -- April 11, 2014

April 11, 2014 03:16 AM

Corn futures are called steady to 1 cent lower after a lackluster overnight session.

  • Corn futures saw lackluster trade overnight, ending 1 to 2 cents lower.
  • Traders are focused on evening positions ahead of the weekend and are also keeping an eye on near-term forecasts.
  • Cooler temps are expected to move back into the Midwest early next week, which would stall early fieldwork.
  • But traders aren't overly concerned about a timely start to the planting season at this point.
  • May corn futures pivoted around the $5.00 level overnight, which signals bulls are working to establish this level as support.


Soybean futures are called to open 4 to 8 cents lower amid profit-taking.

  • Soybean futures ended the overnight session 4 to 8 cents lower amid light profit-taking.
  • Traders are evening positions ahead of the weekend. Key will be in funds view early weakness as a buying opportunity as has been the case on previous tests of uptrending support.
  • Signs of a slowdown in the Chinese economy weighed on soybean futures overnight. Traders say this raises concerns about the country's near-term soybean demand.
  • However, this morning USDA announced a 330,000-MT soybean sale to an unknown destination for 2014-15, which traders suspect is China.
  • China's Consumer Price Index rose to 2.4% over year-ago in March, largely driven by an increase in food prices.


Wheat futures are called 3 to 5 cents lower amid profit-taking.

  • SRW and HRW wheat ended the overnight session mostly 4 to 5 cents lower, with HRS favoring a weaker tone in mixed trade.
  • Traders are eyeing weekend forecasts that have some rainfall in the Southern Plains. However, recent forecast rain events have been a disappointment and moisture needs for the developing crop are increasing.
  • Otherwise, there's little fresh news for the market to digest and technicals have further weakened this week.


Live cattle futures are called slightly higher in lackluster trade.

  • Live cattle futures saw slight gains in overnight trade, which is a sign of short-covering this morning to maintain the back-and-forth trade seen so far this week.
  • Traders are still waiting on cash cattle trade to begin. Given this week's slightly larger showlist and weaker tone in the beef market, steady to $1 lower trade with last week's $148 to $150 trade is expected.
  • Choice beef values softened 46 cents yesterday and Select declined 93 cents, but a pickup in movement occurred this week as 194 loads were traded yesterday.
  • There is room to the upside to correct for nearby contracts as they hold a discount to cash expectations.


Lean hog futures are called to open lower on profit-taking.

  • Lean hog futures were slightly to moderately lower overnight, which suggests a round of profit-taking will be seen ahead of the weekend.
  • Additional pressure is expected from the pork market, as values slipped $1.84 amid moderate movement of 323.38 loads yesterday. Belly prices led declines in cuts yesterday.
  • The cash hog market is called steady to $1 lower this morning as packers work to improve profit margins.
  • Bears have the near-term technical advantage after prices have extended the decline from the March all-time high this week.
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