Grains Weaker Ahead of Weekly Sales Report

January 25, 2013 12:18 AM

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Overnight highlights. Following are opening grain and livestock calls at 6:20 a.m. CT:

Corn: Mixed. Corn is favoring a firmer tone in mixed trade, although nearby contracts are marginally lower. Futures are currently working on slight losses for the week, although no technical chart damage has been done. There's little fresh news for the market to digest this morning, with traders waiting on the weekly export sales data to be released this morning.

Soybeans: 3 to 5 cents lower. Futures are weaker this morning after yesterday's late-day recovery. Traders are waiting on this morning's weekly export sales data before extending positions too far in either direction. A strong weekly sales report should help shore up support for the market, although focus this week has also been on improving South American weather conditions.

Wheat: 1 to 3 cents lower. Wheat is weaker this morning despite a weaker dollar index on spillover from neighboring pits. Wheat needs a dose of fresh demand news to encourage fresh buying, as the market is signaling a near-term high may have been posted.

Live cattle: Steady to firmer. Futures are expected to see a lift ahead of the Cattle on Feed Report, which will serve as a reminder of the tight supply situation. Traders expect On Feed and Marketings to come in below year-ago levels, while Placements are expected above year-ago. Buying, however, could be limited by this week's weaker tone in the beef market.

Lean hogs: Steady to firmer. Futures are expected to benefit from followthrough buying after yesterday's strong gains on talk of tightening supplies. Packers unexpectedly raised cash bids yesterday and more of the same is expected today, which signals packers are short bought due to tighter market-ready supplies.


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