Johnston Pro Farmer Senior Markets Editor
as of 7:00 a.m. CT
over... It's finally here, the day "after" the longest and
most expensive (and mentally draining) presidential election in our country's
history. Now it's time to unite and look forward. Here's one interesting piece
of what a democratic president-elect means for today. Grain futures typically
are down slightly the day after a democratic president is elected into office.
Key in that information is "just for today." It will be interesting
to see how the equity markets react to the country's choice as the next president.
Keep 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: Mixed. Futures were narrowly mixed overnight, trading around 5
cents lower to 2 cents higher. Futures closed mostly around a dime higher yesterday,
which was near opening levels, but also near session lows. Much of Tuesday's buying
interest came on spillover from outside markets, as the dollar was sharply lower
and crude oil was sharply higher. December corn needs to climb back to around
the $4.50 level to confirm a low has been posted.
Soybeans: 2 to 7 cents
lower. Futures were mostly around 3 cents lower overnight on light profit-taking
pressure. Futures closed around 20 cents higher yesterday, but that was near opening
levels and near session lows. January soybeans gapped above last week's high on
the open and left a 2- cent gap on the daily chart. Key near-term resistance starts
at today's high of $9.63 and extends to the top of the Oct. 6 gap at $10.06. Filling
that gap would indicate an extended price recovery is underway, especially if
the 40-day Moving Average, which should be around $10.23 Wednesday, is violated.
Wheat: Mixed. Futures were mixed overnight, trading
around 1 cents higher to 3 cents lower. Futures came well off session highs into
the close yesterday, finishing around a dime higher. December Chicago wheat futures
are nearing key near-term resistance at the Oct. 14 high of $5.98 and the top
of the Oct. 10 gap at $6.01. The 40- day Moving Average, which will be around
$6.24 Wednesday, must also be cleared to extend the price recovery.
Cash cattle expectations: $1 higher.
Boxed beef prices firmed 93 cents to $1.97 Tuesday on movement of 266 loads. With
the beef market showing strength, expectations for higher cash cattle prices compared
to last week's mostly $92 trade are building. Cash sources feel cash cattle trade
could start today if packers raise cash bids to at least $93.
Futures call: Higher. Futures are called higher based on spillover from
yesterday's gains and cash optimism. February live cattle spent most of yesterday
pivoting around resistance at the previous day's high and closed just beneath
it. Futures still posted a high-range close. Next resistance lies at the October
7 high of $96.10 and extends to the top of the early October gap area at $97.70.
Filling that gap would confirm a near-term low has been posted.
hog expectations: Steady to weaker. The pork cutout value followed
up the $1.09 drop Monday with a $3.53 plunge yesterday. With hefty supplies, packers
are having to slash pork prices to keep product moving through the pipeline. The
sharp decline in price prices will cause packers to actively lower cash hog bids
to keep margins from plunging.
Futures call: Mixed. Futures
are called to open mixed as spreading continues to be a dominate force in the
market. Futures saw some corrective buying interest, but attitudes remain bearish.
February lean hog futures inched to a new contract low yesterday.