Ahead of the Open (VIP) -- May 9, 2013

May 9, 2013 03:18 AM

Corn futures are called to open mixed after a choppy overnight session.

  • Corn futures ended the overnight session narrowly mixed, with buying limited by a slightly negative tone in outside markets.
  • Traders are disappointed by this morning's weekly export sales data that showed sales of 115,800 MT for 2012-13 and sales of 169,900 MT for 2013-14. Combined, the tally came below expectations.
  • But China was on the player's sheet for 75,000 MT of new-crop corn bookings.
  • Rains moving across the western Corn Belt this morning are keeping producers out of the fields, although better planting conditions are in the forecast for next week.


Soybean futures are called to open mixed amid bull spreading.

  • Soybean futures ended the overnight session mixed, with old-crop up 4 to 8 cents, September 1 cent higher and new-crop futures marginally to 1 1/4 cents lower.
  • Bull spreading due to tight supplies and improvement in country basis levels helped to lift old-crop futures overnight. This is expected to spill over into daytime trade.
  • Weekly export sales of 193,800 MT for 2012-13 and 391,700 MT for 2013-14 were within expectations. The booking pace slipped compared to last week and total commitments for 2012-13 are now 6% ahead of year-ago.
  • In addition, USDA reported a 110,000-MT daily soybean sale to China for 2013-14.


Kansas City and Minneapolis wheat futures are called to open mixed, with Chicago slightly lower.

  • Chicago wheat futures ended the overnight session 2 to 5 cents lower, with Kansas City and Minneapolis futures mixed.
  • Strength in the dollar index this morning is limiting buying interest.
  • Weekly export sales of 239,200 MT for 2012-13 and 226,300 MT for 2013-14 were within expectations.
  • While drought worsened across Texas last week, rains moving across the Central and Southern Plains have traders looking for stabilization in crop conditions ratings, though this system was associated with some wind and hail damage.


Live cattle futures are expected to be mixed this morning on short-covering and followthrough from yesterday's losses.

  • Live cattle futures ended yesterday lower and are due for a corrective bounce, especially since June live cattle are trading at a steep discount to this week's cash trade.
  • Cash cattle trade picked up at $126 to $127 in the Plains yesterday, which is down $2 from last week.
  • Weaker cash trade developed despite record Choice boxed beef values yesterday. This signals traders don't expect "high" beef prices to last, as movement has remained slow.


Lean hog futures are called to open steady to firmer on followthrough from yesterday's gains.

  • Lean hog futures are expected to benefit from spillover from yesterday's gains, as well as from strength in the pork cutout market.
  • Pork values firmed 52 cents yesterday and packers moved 505.6 loads of product. This is expected to improve packers' demand for cash hogs.
  • But with margins still in the red, packers will be hesitant to raise bids.
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