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

October 30, 2012 03:47 AM
 

The U.S. stock and bond markets are closed today, but there are plans to resume trade Wednesday. U.S. Stock futures and options at 8:15 a.m. CT again today. Electronic trading in the energy and metal markets is operational today, but floor trade is closed.

Corn futures are mostly 1 to 2 cents higher amid light short-covering.

  • Corn is enjoying light short-covering this morning, although price action remains lackluster amid a lack of fresh news.
  • Weakness in the U.S. dollar index is adding support this morning, although traders are uncertain about the impacts Hurricane Sandy will have on the economy.
  • UkrAgroConsult revised its Ukraine grain crop forecast to 42.15 MMT from 42.41 MMT as it lowered its corn estimate by 200,000 MT to 18.8 MMT.

 

Soybean futures are mostly 3 to 5 cents higher on short-covering after Monday's sharp losses.

  • Soybean futures are posting slight gains this morning on ideas yesterday's 20- to 30-plus cent losses were overdone.
  • The Chinese Ministry of Commence expects October soybean imports of 4.22 MMT, which if realized would be down from 4.97 MMT in September, but still higher than the ministry's prior forecast of 3.66 MMT.
  • Traders are also keeping a close eye on the South American weather situation. Corn planting delays in Argentina raise expectations some acres will be switched to soybeans, but Mato Grosso, Brazil, is in need of rain.

 

Wheat futures are mostly 4 to 5 cents higher at all three exchanges on support from a weaker dollar.

  • Wheat is enjoying light short-covering on support from a weaker dollar. Strength in corn and soybeans is also helping boost wheat futures.
  • Wheat remains in a follower's role and needs fresh news to break out of its long-lasting consolidation range. Traders continue to wait on fresh demand news, although U.S. supplies are not competitive on the global market.

 

Live cattle futures are called to open mixed on light short-covering vs. demand concerns.

  • Live cattle futures are expected to benefit from ideas yesterday's losses were overdone.
  • But buying will be limited to short-covering as Hurricane Sandy has raised concerns about "lost" beef demand along the East Coast.
  • Choice boxed beef values were up 68 cents and movement was solid to start the week at 151 loads. But Select values declined 62 cents.

 

Lean hog futures are called mixed due to short-covering after yesterday's losses.

  • Lean hog futures are due for a corrective bounce after nearby futures posted $1-plus losses and did some technical chart damage yesterday.
  • But buying will be limited as packer demand for hogs is light due to some plants shutting down temporarily in the eastern Corn Belt. The cash hog market is called steady to $1 lower again today.
  • If nearby futures are weaker on followthrough selling it would strongly suggest a near-term high has been posted and point futures lower over the near-term.
     
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