Global Macro-Economics Top Watch List

November 4, 2011 01:34 AM

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Overnight highlights. Following are highlights of overnight trade and opening calls:

Corn: Marginally to 2 cents higher. This week has featured a flurry of fresh news for investors to digest, but in the meantime, corn continues in its month-long consolidation range. The week started with Japan intervening in the currency market and has featured a host of drama on the euro-zone debt situation. Today, investors are anxiously awaiting the jobs data. For now, economic data is being more closely watched than corn-market fundamentals.

Soybeans: Marginally to 1 cent higher. Futures saw a very quiet overnight trading session, not straying too from unchanged. Like I mentioned in corn, traders have been keeping an eye on the global macro-economic situation, resulting in choppy trade in the bean pit. Futures were up sharply yesterday, however, on talk China may be in the market for more U.S. soybeans soon.

Wheat: Narrowly mixed. Wheat remains in a follower's role, watching moves in the corn market closely. December Chicago wheat is trading at around a 18-cent discount to December corn futures, which makes it a value buy. However, given a lack of fresh demand news for U.S. wheat, traders aren't rushing to buy.

Live cattle: Mixed. This is a tough market to call this morning. Bulls certainly have momentum on their side, but traders are expected to even positions ahead of the weekend, resulting in choppy trade. Live cattle moved to a new all-time high according to the monthly continuous chart yesterday. Bulls are encouraged to buy this week by news Japan is working on rules that would expand exports, but it's still uncertain when the rules will be finalized.

Lean Hogs: Mixed. Futures are called mixed, but a lot is riding on the jobs report this morning. If it's positive and the U.S. stock market is supportive, traders' risk appetite will improve. Meanwhile, the cash hog market is expected to finish the week mostly steady, although some weaker bids are expected due to the seasonal increase in supplies.


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