Johnston Pro Farmer Senior Markets Editor
as of 7:00 a.m. CT
Dollar started week
very strong... The week began with some major news events to shape
trading, and so far it appears the government's takeover of mortgage guarantors
Fannie Mae and Freddie Mac is winning out in terms of market impact. Traders were
more interested in what the takeover means to the economy than watching Hurricane
Ike -- at least for now. Hurricane Ike is expected to miss the bulk of Gulf oil
production facilities, but of course traders will continue to watch the path of
Ike could still prove to be a damaging storm and
extent of that impact will depend be whether it strengthens further once back
over water and the exact path it takes to make landfall in the United States.
But yesterday, traders were more interested in the trend of the dollar. The dollar
was stronger again in overnight trade, while crude oil weakened. This is expected
to result in pressure on the grain market on the open this morning.
your comments coming. Always good to have conversation with you and input
on what you'd like to talk about. E-mail
your comments/question to me by clicking here. Please include your location.
Opening calls. These calls originate
more than three hours before the open -- use caution, things change::
Corn: 8 to 10 cents lower. Futures were sharply lower overnight amid
dollar strength. Futures started the week narrowly mixed, keeping an eye on outside
markets. Early gains were tied to strength in the crude oil market, but traders
quickly turned their attention to the dollar, which was sharply higher Monday
on friendly economic news.
Soybeans: 23 to 27 cents lower. Futures
were lower overnight as oil prices dipped as the projected track of Hurricane
Ike is south of the oil production facilities in the Gulf of Mexico. Futures favored
a firmer tone to start the week, closing 14 1/2 to 16 1/4 cents higher. Soybeans
posted a near-session-high close, but remained within the boundaries of Friday's
Wheat: 13 to 15 cents lower. Futures were
lower overnight on spillover from neighboring pits. Futures started the week under
pressure, pressured by strength in the dollar. Chicago wheat closed 7 to 9 1/4
cents lower, with Kansas City 9 1/4 to 10 3/4 cents lower and Minneapolis mostly
6 to 9 cents lower. Futures were called to open firmer amid short-covering, but
opened mostly weaker due to strength in the dollar from friendly economic news.
Cash cattle expectations:
Watching beef trade. Cash sources say early indications are this week's
showlist is about steady with last week, which is still considered tight. Therefore,
if the beef market shows sustained strength through the week, expectations will
rise for $100 cash cattle trade.
Futures call: Mixed. Futures
are called mixed as they wait on cash direction. To start the week, futures closed
steady to firmer amid short-covering. Nearby live cattle posted a low-range close,
but deferreds posted a high-range close amid short-covering.
hog expectations: Steady to weaker. The cash hog market is expected
to start the day mostly steady, but weaker undertones could develop amid plentiful
supplies. Key for building a base of support this week will be for pork cutout
values to stabilize.
Futures call: Mixed. Futures are
called mixed on the combination of spillover pressure from yesterday's losses
vs. short-covering. Hogs closed slightly to moderately lower yesterday, extending
losses ahead of the closing bell to post a low-range close.