Grain Futures Slip Overnight Amid Profit-Taking

October 12, 2012 01:15 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: 1 to 5 cents lower. Following yesterday's sharp gains, corn futures saw light profit-taking pressure overnight. Futures responded sharply yesterday to USDA's tighter-than-expected carryover figure, as well as the smaller global stocks number. Traders are hesitant to extend long positions until the weekly export sales report, as demand destruction has been ongoing.

Soybeans: 13 to 15 cents lower. Futures are seeing profit-taking pressure following yesterday's gains. And, the fact that soybeans settled off session highs yesterday suggests the market is running out of steam. But if this morning's weekly export sales data shows a strong sales pace continues, it should provide a jolt to the market. The sales pace is already well ahead of what's needed to ration remaining supplies.

Wheat: 2 to 7 cents lower. Futures have reversed much of yesterday's gains, with pressure coming on spillover from neighboring pits. Yesterday's USDA data reminded the market of the tightening global stocks situation. This is helping to limit pressure today, as global crop concerns exist for the upcoming season.

Live cattle: Steady to higher. Futures are expected to see a lift from expectations for $1 to $2 higher cash cattle trade after trade started in Kansas yesterday at $125. Strength in the boxed beef market this week is giving feedlots more bargaining power. Choice beef values have risen back above $191-per-cwt. and movement has remained strong.

Lean hogs: Steady to higher. Futures are expected to find support from strength in the pork cutout market, which encourages traders' thoughts the cash market will continue steady to firmer next week. The pace of gains in the cash market has slowed this week, which has improved their profit margins, especially after pork cutout values improved $1.04 yesterday.


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