Ahead of the Open (VIP) -- December 30, 2013

December 30, 2013 02:13 AM

Corn futures are expected to open 1 to 2 cents lower.

  • Corn futures finished the overnight session 2 to 3 cents lower on spillover from soybeans and beneficial rains across Argentina's grain belt.
  • While high temps remain in the forecast for Argentina, there are chances for scattered showers this week.
  • Weakness in the U.S. dollar index this morning is helping limit pressure on corn this morning, as it makes U.S. corn even more attractive to importers.
  • March corn futures are currently trading in line with where prices started the month to keep the consolidation range intact.


Soybean futures are seen opening 5 to 12 cents lower, with nearbys leading losses.

  • Nearby soybean futures ended the overnight session 10 to 12 cents lower, with far deferreds around 5 cents lower.
  • Futures are being pressured by beneficial weekend rains across dry areas of Argentina, with the forecast calling for several more chances of scattered showers this week. But high temps will increase moisture needs.
  • Soybeans briefly traded higher on weakness in the U.S. dollar index overnight, but ended the overnight session near the lows.
  • USDA announced a 35,000-MT soybean oil sale to an unknown destination for 2013-14.
  • January beans are hovering above support at last week's low of $13.16 3/4.


Wheat futures are called 2 to 4 cents lower on spillover from neighboring pits.

  • All wheat flavors ended the overnight session 2 to 4 cents lower on spillover from weakness in the corn and soybean markets.
  • Pressure was limited by weakness in the U.S. dollar index, but wheat needs constant demand news to stimulate fresh buying by bulls.
  • Meanwhile, Russia's ag minister says the country's 2013 wheat crop of 54.4 MMT is up 37% from the previous year, which reminds of increased global competition with U.S. supplies.
  • Wheat futures are working on sharp monthly losses, which could help to spur some end-of-the-year short-covering.


Live cattle futures are called higher on strength in the cash market.

  • Live cattle futures are expected to build on Friday's gains as traders continue to react to Friday's higher cash cattle trade.
  • Trade took place mostly around $134 in Texas and $132 to $133 in Kansas, which compares to $130 the previous week.
  • Stressful feedlot conditions should give feedlots an upper hand in this week's cash negotiations.
  • But upside potential in live cattle futures could be limited as nearby futures are trading in line with last week's cash prices.
  • Weakness in the corn market is supportive for feeder futures this morning.


Lean hog futures are called higher in reaction to Friday's bullish H&P Report.

  • Lean hog futures are expected to see a boost in reaction to Friday's Hogs & Pig (H&P) Report, which is viewed a bullish by traders.
  • The report showed All Hogs & Pigs at 99% of year-ago levels, which was nearly one percentage point below traders' expectations. USDA made several revisions to align past figures with lower-than-previously projected slaughter totals.
  • Futures are also due for a corrective bounce, but upside potential could be limited by the $2.33 drop in pork cutout values Friday.
  • The cash hog market is called is expected to start the week mostly steady amid variable demand.
Back to news


Spell Check

No comments have been posted to this News Article

Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by QTInfo.com
Brought to you by Beyer