Corn This Week: 'Steady-As-She-Goes'

October 5, 2012 01:26 AM

Follow me on twitter @julijohnston

Overnight highlights. Following are highlights of overnight trade (as of 6:28 a.m. CT) and opening livestock calls:

Corn: 1 to 3 cents lower. Futures continue to consolidate around last Friday's high, with December corn this morning pivoting around $7.55. We've seen a string of near-steady closes this week, signaling traders aren't willing to push too far to the upside or downside. Steady-as-she-goes trade signals traders believe prices are in equilibrium with demand and there are certainly signs of demand destruction.

Soybeans: 1 to 2 cents higher. Futures have been choppy overnight, but are currently favoring a firmer tone. Soybeans ended higher yesterday, but off session highs and within the bounds of the downtrending channel established from the contract highs. While yesterday's weekly export sales data showed prices are not deterring China from buying U.S. soybeans, traders expect next week's Crop Production Report to reflect the "better-than-expected" yields that are being reported.

Wheat: 1 to 2 cents lower. Wheat is lackluster overnight and has been in a follower's role this week. Wheat is working on slight weekly losses, but remains within the boundaries of the long-lasting consolidation phase, which has a slight downward bias given last week's lower-low that was established. Global crop woes continue to limit downside pressure on the market, but global economic concerns are limiting upside potential.

Live cattle: Steady to firmer. Futures are due for a corrective bounce, especially given strength in the beef market. Cash cattle trade got underway yesterday afternoon at $124, which is $1 higher than last week. But futures still ended slightly lower as traders remain concerned about the economy. If this morning's jobs data is a disappointment, it will add to concerns the economy is behind slower beef demand.

Lean hogs: Steady to firmer. Futures are expected to get a lift from ongoing strength in the pork market. Pork cutout values rose $1.84 yesterday to lift packers' profit margins and improve demand for cash hogs. As a result, the cash market is expected to be steady to mostly $1 higher to finish the week as packers work to secure next week's needs. More technical chart improvement was seen in the nearby contracts this week.


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
Brought to you by Beyer