Grains Weaker On Light Profit-Taking

August 22, 2012 01:57 AM
 

 

 

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Overnight highlights. Following are highlights as of 7:00 a.m. CT and opening livestock calls:

Corn: 4 to 5 cents lower. Futures are weaker this morning amid light profit-taking, as well as slight strength in the U.S. dollar index. Disappointing results from the Pro Farmer Midwest Crop Tour helped support the market yesterday, with December corn trading in the upper quarter of yesterday's trading range this morning. Next resistance is the contract high of $8.49.

Soybeans: 2 to 9 cents lower. Soybean futures are weaker this morning amid light profit-taking after futures posted fresh contract highs yesterday. Traders are disappointed by pod counts coming out of the Crop Tour, which increase the market's urgency to ration remaining supplies. South America is seen facing importing additional supplies in the near-term for crushing.

Wheat: 4 to 6 cents lower. Wheat is seeing spillover from neighboring pits amid profit-taking, as well as pressure from slight firmness in the U.S. dollar index. Additional weakness is coming from slowed demand for U.S. wheat, which reflects prices here less competitive than on the global market.

Live cattle: Weaker. Futures are expected to be weaker this morning on followthrough from yesterday's losses as well as more of a "risk-off" stance in outside markets. Choice beef values were down 3 cents and Select rose 5 cents yesterday on solid movement of 153 loads. Traders are watching for signals a near-term high has been posted as thoughts are retailers have secured needed supplies for Labor Day features.

Lean Hogs: Mixed. Futures are expected to see a choppy start to maintain this week's two-sided and choppy tone. Pressure should be limited by the discount nearbys hold to the cash index, but weaker pork cutout values will limit buying to position squaring. Pork movement surged to 107 loads yesterday, but it happened on a decline in pork values of $2.09, with loin prices down sharply. The cash hog market is called steady to lower as packers have supplied booked well into the week.


 

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