Grains Setback On Profit-Taking

July 18, 2012 01:42 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:45 a.m. CT) and opening livestock calls:

Corn: 4 to 7 cents lower. Futures are weaker on profit-taking, as well as talk that China has canceled some corn purchases. But pressure is being limited as there is little in the way of meaningful rain in the near-term forecast. Up to 0.25 inch is in the forecast for the next 5 days in the western Belt, with up to 0.75 inch in the eastern Belt as the heat dome move further west and allows some showers in. But hot temps are expected to linger into next week -- maintaining a high level of stress on the crops.

Soybeans: 6 to 9 cents lower. Futures are seeing some profit-taking pressure this morning, remaining within the boundaries of this week's trading range. November beans traded above the key $16.00 level yesterday, but posted a mid-range close. A close above this level could trigger a round of buy stops to accelerate the uptrend. Longer-term forecasts signal the crop will enter the key pod filling stage under extreme stress.

Wheat: 6 to 9 cents lower. Futures are seeing spillover from neighboring pits, as well as from dollar strength. Global crop concerns continue to circulate the market, however, as rains are damping harvest in areas of Europe and rising temps in Russia and Ukraine are raising concerns about its filling crop. This is raising expectations for stepped up demand for U.S. wheat.

Live cattle: Steady to lower. Cash cattle trade got under way in Nebraska and the Southern Plains yesterday at $113 -- down $2 from last week due to a larger showlist. This opens additional near-term pressure for nearbys live cattle, as August is trading at around a $2 discount to the cash market.

Lean Hogs: Mixed. Futures are expected to be mixed as traders believe the pork market is showing signs of bottoming. Pork cutout values rose $1.22 yesterday on strong movement of 111.3 loads. Packers' profit margins remain in the red, but this helped to trim losses. Cash hog bids are called steady to lower again today.


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