China Cancels Soybean Purchases

November 16, 2012 02:02 AM
 

 

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Overnight highlights. Following are highlights as of 8:05 a.m. CT and opening livestock calls:

Corn: 1 to 4 cents lower. Futures are seeing spillover pressure from soybeans, as well as from slight strength in the U.S. dollar index. This morning's weekly export sales report didn't have much for bulls or bears, as sales of 103,900 MT for 2012-13 and 208,200 MT for 2013-14 were within expectations.

Soybeans: 8 to 15 cents lower. Futures weakened in overnight trade on news China has canceled 600,000 MT of U.S. soybean imports due to weak domestic demand and poor crushing margins. General expectations are that China will rebook these needs at current lower prices than what the original purchase was made at. This morning's weekly export sales report showed sales of 559,700 MT for 2012-13 and 25,500 MT for 2013-14 -- which was above expectations.

Wheat: Mixed. Wheat futures are mixed, with nearbys favoring a firmer tone amid global crop concerns. Traders expect demand for U.S. wheat to improve soon, but are still waiting on an official announcement that Ukraine will halt exports early in December. This morning's weekly export sales report showed sales of 314,600 MT for 2012-13 -- coming within expectations.

Live cattle: Mixed. Live cattle futures are expected to be mixed as traders wait on cash cattle trade to begin. Traders will also be moving to the sidelines ahead of this afternoon's Cattle on Feed Report. The report is expected to show On Feed at 94.6%, Placements at 87.3% and Marketings at 102.6% of of year-ago levels.

Lean Hogs: Mixed. Following an active week in the lean hog pit, traders will be focused on evening positions. With December hogs trading in line with the cash index, traders will watch the cash market closely for near-term direction. Packers saw profit margins tighten this week, which is expected to result in steady to lower cash bids to close out the week.


 

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