Fed's Plan to Boost the Economy Weakens Dollar

September 14, 2012 01:22 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:30 a.m. CT) and opening livestock calls:

Corn: 6 to 8 cents higher. Futures are seeing a lift from positive outside markets, as the U.S. dollar index is sharply lower again this morning as traders digest yesterday's move by the Federal Reserve to stimulate the economy. The U.S. dollar index has violated support at the May low, which has triggered gains in other key outside markets like crude oil.

Soybeans: 11 to 14 cents higher. Futures are also being lifted by positive outside markets, as well as concerns about tightening supplies. Soybeans are also seeing a boost from the strong technical situation, as November beans have posted a strong recovery since violating the $17.00 level earlier this week.

Wheat: 7 to 14 cents higher. Wheat is enjoying spillover from neighboring pits as well as the tightening global stocks situation. Sharp weakness in the U.S. dollar index again this morning is alleviating concerns about U.S. wheat not being competitive on the global market. December Chicago wheat has posted a fresh weekly high this morning, pivoting around $9.20.

Live cattle: Steady to firmer. Futures are expected to see a lift from strength in the U.S. stock market as investors' concerns about the economy are calmed after the Federal Reserve announced another round of quantitative easing yesterday. Meanwhile, nearby futures are trading in line with this week's higher cash cattle trade and boxed beef values have turned mixed -- although movement has improved this week.

Lean hogs: Mixed. Futures are expected to see choppy trade today as traders weigh positive outside markets against building supplies. This week's hog slaughter is set to be a new record for the month -- testing capacity due to a seasonal increase in supplies and ongoing sow liquidation. But the cash market is expected to stabilize to end the week, as most locations are expected to offer steady bids after nearly a month's worth of lower prices.


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