Grains Start Week Higher on Weather Concerns

January 22, 2013 12:40 AM
 

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Overnight highlights. Following are opening grain and livestock calls at 6:40 a.m. CT:

Corn: 2 to 5 cent higher. Weakness in the U.S. dollar and concerns about dryness in Argentina are supportive for corn futures this morning. march corn is testing resistance at last week's highs of $7.35, which if violated, could trigger some buy stops. Commercials continue to be noted buyers of corn, which reflects the tight supply situation.

Soybeans: 14 to 18 cents higher. Futures are stronger this morning on concerns about dryness in areas of South America and on help from dollar weakness. March soybean futures have inched above resistance at last week's high, which signals bulls are gaining momentum. .

Wheat: 4 to 5 cents higher. Futures at all three exchanges are firmer this morning on help from weakness in the dollar index and help on spillover from neighboring pits. Additional support is coming from ongoing dryness concerns in the U.S. Southern Plains. Talk that Russia may lift grain import duties is also supportive as doing so could boost demand for U.S. wheat.

Live cattle: Steady to firmer. Following last week's sharp losses, cattle futures are due for a round of short-covering. Traders will be watching the beef market for cash clues, especially since this week's showlist is down from last week. But the most supportive news this morning are indications Japan is closer to easing its age requirement on beef imports -- possibly by next month, which would boost demand from the country.

Lean hogs: Mixed. Futures are expected to be mixed as traders assess this week's demand for cash hogs. Some packers are thought to be short-bought on supplies heading into this holiday-shortened kill week. But others are concerned packers' demand will be lighter due to negative profit margins.


 

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