Futures Choppy Overnight as Traders Digest USDA Data

June 13, 2012 01:28 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:15 a.m. CT) and opening livestock calls:

Corn: Marginally to 1 cent lower. Futures are seeing light followthrough pressure from yesterday's losses, with pressure limited by weakness in the U.S. dollar and ideas yesterday's losses were overdone. Futures slipped yesterday after USDA disappointed the market by leaving 2011-12 and 2012-13 carryover levels unchanged from last month. With widespread rains in the forecast in the 6-10 day period, concerns about the crop needing another shot of rain are limited.

Soybeans: Mixed. Nearbys are marginally to 3 cents lower, with deferreds marginally to 3 cents firmer amid spreading. Weakness in the U.S. dollar index is helping to limit weakness, as well as yesterday's reminder of tight stocks by USDA. But with little other fresh news for the market to digest this morning, price action is currently lackluster.

Wheat: 2 to 6 cents higher. Futures are seeing a lift from dollar weakness, as well as a lower wheat crop estimate from ABARES on dry weather and as France left its estimate of its crop unchanged from last month. Ideas yesterday's losses were overdone also provided a lift, as futures sank yesterday on a higher-than-expected U.S. winter wheat crop estimate.

Live cattle: Mixed. Futures are called to open mixed as traders wait on cash trade for direction. While beef movement has remained strong, prices have moderated. Choice values were down 21 cents yesterday and Select dropped $1.44 on solid movement of 212 loads. Given this week's larger showlist, there's more pressure on the beef market to perform in order to build on last week's higher cash trade.

Lean Hogs: Mixed. Pressure on futures will be limited by tightening supplies and yesterday's 91-cent increase in pork cutout values, but with packers' margins still in the red, there's concern demand for cash will be varied. Nearby live cattle are trading at a premium to the cash index as traders have a positive near-term bias toward the product market.


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