Market Snapshot, 8:30 am CT (VIP) -- August 17, 2012

August 17, 2012 03:47 AM

Corn futures are mixed, with the September through March contracts mildly firmer.

  • After favoring the downside overnight, corn futures have firmed to a mixed tone. Much of the support is coming on spillover from wheat.
  • Traders are also concerned with supplies amid the negative impact from drought. While rains have picked up recently, they are too late to help a severely damaged crop, although it could still add test weight in some of the better areas.
  • Gulf corn basis is firmer this morning, with bids 2 to 6 cents higher.


Soybean futures are 7 to 12 cents higher, which is a slight extension from earlier gains.

  • While weather has improved, traders remain hesitant to sell as there has been no solid proof that current prices, although historically high, are slowing soybean use.
  • Rains were heavier and more widespread than expected in Illinois and Indiana yesterday and overnight. This should help filling soybeans. Forecasts don't call for much precip near-term, but temps are expected to run below normal into the middle of next week.
  • Gulf soybean basis is steady to firmer, signaling demand is solid and supplies are tight.


Wheat futures are trading mostly 8 to 15 cents higher at all three locations.

  • There's continued talk about potential export restrictions from Russia and Ukraine despite indications from both governments those talks are not currently taking place.
  • Traders are also concerned about building dryness in Western Australia and a sharp reduction in Argentine wheat acres due to dryness and government policy.
  • On the demand side, South Korea bought 49,000 metric tons (MT) of U.S. wheat and Taiwan purchased 94,250 MT of U.S. wheat.
  • So far, mild strength in the U.S. dollar is being overshadowed by fundamental support.


Live cattle futures are called steady to lower. Feeder cattle are also expected to favor a weaker tone.

  • Live cattle futures closed poorly Thursday, which is expected to lead to followthrough selling this morning.
  • Traders will continue to even positions ahead of this afternoon's Cattle on Feed Report, which is expected to show On Feed at 100.7%, Placements at 91.4% and Marketings at 101.6% of year-ago levels.
  • Traders are also waiting on cash cattle trade to develop in the Plains. Expectations are for cash trade to come in steady to firmer compared with last week's $119 to $120 trade, although active trade is not expected until this afternoon. If there's sharp pressure on cattle futures it could negatively impact cash trade.
  • Feeder cattle closed low-range Thursday, which is expected to lead to followthrough selling, especially with corn futures favoring a mildly firmer tone in most contracts.


Lean hog futures are seen opening with a mixed tone this morning.

  • Hog traders continue to fret about supplies amid expectations high feed prices will lead to more herd liquidation as hog numbers build seasonally. This will limit buying interest.
  • Mild support could come from the sharp discount futures hold to the cash index.
  • Cash hog bids are called steady to lower across the Midwest as market-ready supplies are abundant. Most plants are bought ahead on kill needs well into next week.
Back to news


Spell Check

No comments have been posted to this News Article

Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer