Futures See Limited Price Action Overnight

November 15, 2012 01:29 AM


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Overnight highlights. Following are highlights as of 7:30 a.m. CT and opening livestock calls:

Corn: Marginally to 1 cent lower. Futures didn't stray too far from unchanged in overnight trade. Slight strength in the U.S. dollar has futures favoring a weaker tone, although crude oil is firmer. Concerns about the euro-zone economy will limit buying in the commodity markets unless there's fresh news for traders to digest.

Soybeans: 2 to 5 cents lower. Futures have seen two-sided trade, but are currently favoring a weaker tone this morning. Like corn, soybeans haven't strayed too far from unchanged yet today. Traders recognize demand for U.S. soybeans remains strong, but are also expecting a large South American crop next year and traders have a "risk-off" stance toward the markets given global and U.S. economic concerns.

Wheat: 1 to 2 cents higher. Wheat futures are mixed, but favoring a firmer tone due to concerns about the global wheat crop. Dry conditions in the U.S. Central and Southern Plains have raised concern about the establishment of the HRW wheat crop. But limiting buying is a lack of fresh demand news.

Live cattle: Mixed. Live cattle futures are expected to be mixed as traders wait on cash cattle trade to begin. Choice beef values slipped 17 cents and Select was down 29 cents yesterday. But movement at 240 loads is strong. While expectations are for steady to lower cash cattle trade, pressure on futures will be limited as traders expect tomorrow afternoon's Cattle on Feed Report to show On Feed at 94.6% of year-ago levels.

Lean Hogs: Lower. Futures are called lower in reaction to yesterday's $2.55-drop in pork cutout values, which sharply reduced packers' profit margins. The cash hog market is called steady to mostly lower as packers are having no difficulty securing supplies. Given this week's surge to contract highs in most contracts, pressure on futures today would strongly suggest near-term highs have been posted.


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