Market Snapshot, 8:30 am CT (VIP) -- August 14, 2012

August 14, 2012 03:45 AM

Nearby corn futures are fractionally to 2 cents higher on short-covering.

  • Following yesterday's losses that followed key bearish reversals, corn futures are being supported by short-covering this morning.
  • Also supportive is yesterday's condition report which showed slight deterioration in the crop as it speeds toward maturity.
  • Traders are also keeping a close watch on demand for signs end-users are short-bought. This morning's deterioration in Gulf basis signals demand has slowed.


Soybean futures are 3 to 13 cents higher on short-covering and stronger-than-expected crush data.

  • Following two sharp days of price weakness, soybean futures are seeing some short-covering. November beans are using $16.00 as a pivot point.
  • Also supportive this morning is NOPA soybean crush data for July that confirms strong soy demand. Crush outpaced traders' expectations at 137.38 million bu. -- up from month- and year-ago levels. Soyoil stocks came in slightly higher than expected at 2.345 billion pounds.
  • Yesterday's crop condition report showed conditions improved as expected, with our weighted Crop Condition Index up 2 points from last week. A milder near-term forecast could limit gains in futures.


Nearby wheat futures are mostly 1 to 6 cents higher, with deferreds turning mixed at all three exchanges.

  • Nearby wheat futures are seeing a lift on spillover from neighboring pits and slightly positive outside markets.
  • Concerns about the Australian wheat crop are heightening after its government said ENSO was close to El Nino thresholds, which favors drier conditions in eastern growing regions of the country.
  • Otherwise, traders feel like global crop concerns are factored into prices and have turned their focus to demand.


Live cattle futures are called to open steady to firmer amid ongoing strength in the beef market.

  • Choice values rose another $1.94 yesterday and Select climbed $1.77, but movement moderated to start the week at 122 loads.
  • Upside potential could be limited by the $2 premium August live cattle hold to the top of last week's $119 to $120 trade.
  • Futures are also expected to see a lift thanks to strength in the U.S. stock market after France and Germany released second-quarter gross domestic product data that beat analysts' expectations.


Lean hog futures are called to open steady to lower on concerns about the cash market.

  • Lean hog futures are expected to see profit-taking following yesterday's gains due to ongoing concerns about the cash market.
  • The cash hog market is called steady to $1 lower as packers are having no difficulty securing needed supplies.
  • However, packers' profit margins have returned to the black and October hogs, which will soon be the lead-month contract, hold around a $16 discount to the cash index. This should help to limit losses on nearby lean hog contracts.
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