Market Snapshot, 8:30 am CT (VIP) -- November 16, 2012

November 16, 2012 02:41 AM
 

Corn futures are 3 to 6 cents lower on strength in the U.S. dollar index and spillover from soybeans.

  • Strength in the U.S. dollar index is weighing on the commodity sector this morning. Corn is also seeing spillover from double-digit losses in the soybean pit.
  • Weekly corn sales of 103,900 MT for 2012-13 and 208,200 MT for 2013-14 were within expectations, but they are still not strong enough to inspire fresh buying in futures.
  • Gulf corn basis is steady this morning, which suggests no fresh export news is on the horizon.
  • But news Taiwan will turn to the U.S. to at least partly cover its corn needs after congestion in Brazil's ports delayed shipment of at least 420,000 MT of corn for September to October delivery is limiting selling interest.

 

Soybean futures are 8 to 19 cents lower on news China has canceled some purchases of U.S. soybeans.

  • News China has canceled orders for 600,000 MT of U.S. soybeans due to tight crushing margins is pressuring soybeans. But traders expect China to rebook these needs at current prices, which are below the original purchase price.
  • This morning's weekly export sales report showed sales of 559,700 MT for 2012-13 and 25,500 MT for 2013-14 -- which was above expectations.
  • Favorable weather in South America is adding to weakness in the soybean pit this morning.

 

Wheat futures are favoring the downside in choppy trade this morning.

  • Strength in the U.S. dollar index and sharp losses in the bean pit are limiting buying in the wheat pit this morning.
  • But global and U.S. weather worries remain on traders' minds. Dry conditions across the U.S. Central and Southern Plains this week has traders expecting further crop condition declines in next Monday's Crop Condition Report.
  • This morning's weekly export sales data showed sales of 314,600 MT for 2012-13, which was within expectations.

 

Live cattle futures are called mixed as traders move to the sidelines ahead of the Cattle on Feed Report.

  • Traders will be focused on moving to the sidelines ahead of this afternoon's Cattle on Feed Report. The report is expected to show On Feed at 94.6%, Placements at 87.3% and Marketings at 102.6% of of year-ago levels.
  • Traders are also waiting on cash cattle trade to begin in earnest. Bids and asking prices are several dollars apart, which signals the likelihood of late-day cash trade. Most expect $1 to $2 lower trade with last week's $124 to $126 trade due to this week's larger showlist.
  • Live cattle could also see some some short-covering on spillover from the U.S. stock market, which is expected to benefit from corrective buying and hopes going over the fiscal cliff may be avoided.
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