Dollar Strength Weighs on Grains Overnight

March 6, 2012 12:35 AM
 

Follow me on twitter @julijohnston

Overnight highlights. Following are highlights of overnight trade:

Corn: 6 to 9 cents lower. Futures faced profit-taking overnight amid strength in the U.S. dollar index. The dollar is stronger against most other major currencies due to economic concerns overseas. Disappointing retail sales data from Germany and overall concerns about the euro-zone. Also this morning, the head of China's State Grain Administration said the country's corn imports aren't likely to increase sharply over the next two years amid adequate domestic supplies.

Soybeans: 2 to 3 cents lower. Futures were weaker overnight on spillover from negative outside markets. Strength in the dollar index is weighing heavily on gold futures, which are testing last week's spike low. Pressure on soybeans is being limited as traders work to secure more acres for the spring. November bean futures are pivoting around $12.90 to remain within the boundaries of the recent uptrend.

Wheat: 3 to 12 cents lower. Futures were mostly around 11 to 12 cents lower overnight amid strength in the U.S. dollar index. Concerns about the global economy are supporting the dollar. Fluctuations in the dollar make traders nervous about U.S. grain exports and given the outlook for plentiful global supplies, there is increased nervousness over the competitiveness of U.S. wheat prices on the global market.

Live cattle: Weaker. Futures are expected to be weaker due to negative outside markets. Traders are also growing nervous about the beef market, as the rise in prices has lowed demand. This week's cattle showlist is about unchanged from last week, but cash cattle trade isn't expected until later in the week.

Lean Hogs: Weaker. Futures are called to open under pressure on spillover from negative outside markets. Pork cutout values slipped 17 cents yesterday, with loin values higher and ham values leading the move lower. As a result, the cash hog market is expected to be weaker again this morning.


 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

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!

Markets

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