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

November 30, 2012 02:45 AM
 

Corn futures are 1 to 4 cents lower on followthrough pressure from yesterday's losses.

  • Futures are seeing further profit taking this morning as traders even positions on the last trading day of the month.
  • But pressure is being limited by light deliveries against December corn at 246 contracts -- reflecting strength in the cash market.
  • China's National Bureau of Statistics says 2012 corn production rose 8% from last year to a record 208.12 MMT. Still, domestic production has not grown as much as demand.

 

Soybean futures are 8 to 10 cents lower on profit-taking and nervousness in the investment world as fiscal cliff negotiations continue.

  • Traders will also be focused on evening positions as they close their books for the month, with the looming fiscal cliff also on their minds. Until lawmakers strike a deal, investors will be hesitant to extend their long exposure in commodity markets.
  • Pressure is also coming from forecasts for rains in southern Brazil, where soil moisture shortages have worsened recently. And Argentina is expected to remain too wet; more rain is in the forecast to keep planting running at a slow pace.
  • While off this month's low, soybean futures are set to post their third straight month of losses.

 

Wheat futures are mostly 3 to 10 cents lower on spillover from neighboring pits and month-end positioning.

  • Wheat futures are seeing spillover from corn and soybeans, with traders also nervous about a lack of meaningful progress in fiscal cliff negotiations.
  • Also weighing on the market are heavy deliveries against December Chicago wheat at 2,119 contracts.
  • Traders are also digesting news that India's cabinet approved an additional 2.5 MMT of wheat from government stocks, which is in addition to the 2 MMT already allowed.
  • But dryness in the U.S. Central and Southern Plains remains on traders minds, which should help limit pressure.

 

Live cattle futures are called to open mixed as traders wait on active cash cattle trade to begin.

  • December live cattle are trading in line with the top end of last week's $127 to $128 cash cattle trade, which signals traders are looking for steady trade later today.
  • Cash negotiations are ongoing as asking prices and bids are still several dollars apart. Feedlots are noting tighter supplies and packers are dealing with negative profit margins.
  • Choice boxed beef values firmed 30 cents yesterday and Select dropped 83 cents on solid movement of 173 loads.
  • Traders will also be keeping an eye on outside markets as fiscal cliff negotiations continue with little progress toward reaching a deal.

 

Lean hog futures are called mixed as traders even positions on this last trading day of the month.

  • Lean hog futures are vulnerable to profit-taking as futures have posted strong gains this month.
  • December hog futures hold a $4.28 premium to the cash market, which also raises the risk of profit-taking. This does, however, signal traders have a positive bias toward the cash market as we head into December.
  • Pork cutout value dropped 52 cents yesterday, but packers are still working with positive profit margins. The cash hog market is called steady to firmer to end the week.
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