Grain Market Needs Fresh News

November 29, 2011 12:42 AM

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

Corn: Mixed. Futures were slipping after seeing gains most of the overnight session. Futures settled off session highs yesterday, but posted gains thanks to dollar weakness. The U.S. dollar index is weaker again this morning as optimism is rising euro-zone leaders are making progress toward addressing the debt crisis. Basis also continues to improve as farmers are reluctant to sell. Corn has a lot of work to do in order to improve the technical situation, as March corn is pivoting around $6.00.

Soybeans: 3 to 4 cents higher. Futures benefited from followthrough buying as well as weakness in the U.S. Dollar index. The U.S. stock market is also expected to see a boost this morning on optimism the worst is behind in terms of the euro-zone crisis and on strong "Cyber Monday" holiday sales. But as is the situation with corn, there is a lot of work to do in order to turn the reigns over to bulls. January beans need to at least return above $12.00 to signal near-term low is in the works after testing $11.00 last week.

Wheat: 2 to 5 cents higher. Futures saw spillover from neighboring pits and help from positive outside markets overnight. However, futures started stronger yesterday and moved off the daily highs amid a lack of fresh news. Without fresh demand news, traders aren't as interested in reestablishing or extending long positions. March Chicago wheat is hovering just above contract-low support of $5.86.

Live cattle: Steady to higher. Cattle saw a boost yesterday from triple-digit stock market gains, although December live cattle ended slightly lower amid light profit-taking. Choppy price action could be seen as traders wait on cash trade to develop and as traders gauge beef demand. This week's showlist is tighter, which gives feedlots more bargaining power.

Lean Hogs: Mixed. Futures ended lower yesterday amid profit-taking and as traders narrowed the premium nearbys hold to the cash index. Traders simply have too much near-term cash improvement priced into the market. The cash market is expected to be mostly steady today, as packers say they are having no difficulty securing supplies. But demand is expected to pick up as retailers prepare for holiday features.


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