Last Trading Day of August

August 31, 2012 02:25 AM

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Overnight highlights. Following are highlights as of 7:15 a.m. CT and opening livestock calls:

Corn: 1 to 2 cents lower. There's little news for the corn market to digest this morning, although traders remain concerned about the possibility of too much late-season rain in southern and eastern Corn Belt locations this weekend as remnants from Isaac push north and eastward. Otherwise, focus will be on end-of-the-month position squaring, especially with traders working to even positions ahead of the holiday weekend.

Soybeans: 3 to 6 cents lower. Futures are seeing light profit-taking after pushing to contract highs yesterday. Futures were supported yesterday by still-strong demand, which signals prices have yet to rise to a level that will significantly slow demand. There is also concern about what this week's hot temps and dry conditions did to the soybean crop. And, even through there's rain in the weekend forecast, it comes too late for much of the Midwest.

Wheat: 6 to 8 cents lower. Wheat is seeing spillover from neighboring pits, as well as pressure from news Russia will not restrict exports. Traders are also working to even positions ahead of the holiday weekend and close their books for the month. However, positive outside markets could bring some buying to the commodity markets, as the U.S. dollar index is sharply lower this morning.

Live cattle: Mixed. Futures are expected to be mixed as traders even positions ahead of the weekend. Positive outside markets should help to limit pressure on live cattle, although there are concerns about beef demand tapering off after Labor Day. Traders are still waiting on active cash cattle trade, which is now expected to be steady to lower, although only light trade is expected.

Lean Hogs: Steady to lower. Lean hog futures are expected to be pressured by continued weakness in the cash hog market. But with futures already at a discount to the cash index there's limited downside risk for futures. The cash market is expected to be steady to lower again today as packers say they have an overabundance of market-ready supplies.


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