Market Snapshot, 8:30 am CT (VIP) -- October 31, 2012

October 31, 2012 03:46 AM

It's back to business for the financial markets today, as the U.S. stock market reopened at 8:30 a.m. CT. After being closed for two days, investors have some ground to make up and will be evening positions to close the month.


Corn futures are 2 to 3 cents higher through the July contract on help from dollar weakness. Far-deferred contracts have turned steady to lower.

  • Positive outside markets are helping to keep corn futures firm this morning. Traders will also be watching the financial markets closely for direction.
  • With fresh news limited, focus is also on evening positions to end the month.
  • Planting delays in Argentina and southern Brazil are also supportive as traders anticipate some acres will be switched to soybeans.


Soybean futures are 6 to 10 cents higher on positive outside markets and tight supplies.

  • Weakness in the U.S. dollar index and a mildly firmer start for the U.S. stock market, which reopened this morning, are lending support to soybean futures.
  • Firmer basis is also lending support, as traders believe it reflects a pickup in demand.
  • This morning USDA announced a 25,000 MT soyoil sale to China for 2012-13 to reflect the country's ongoing strong appetite for U.S. soy products.
  • Deliveries against November soybean futures were at the very top end of the guess range at 500 contracts.


Wheat futures are mostly 3 to 5 cents higher in Chicago and Minneapolis, while Kansas City wheat is posting gains of 1 to 2 cents.

  • Wheat is benefiting from spillover from positive outside markets, as well as from neighboring markets. Traders are watching to see if weakness in the U.S. dollar index attracts fresh export demand for U.S. wheat.
  • Wheat is also being supported by reports of disappointing early harvest results in Australia.
  • But futures continue in their downtrending channels established from summer highs and traders' focus will also be on evening positions to end the month.
  • However, news from Ukraine's ag ministry that "no official document on the export ban has been prepared" makes traders uncertain of the country's intent, although exportable supplies are dwindling quickly.


Live cattle futures are called to open steady to firmer on followthrough buying.

  • A strong close Tuesday is expected to produce followthrough buying in live cattle futures this morning.
  • Higher Choice boxed beef prices yesterday eased traders' concerns the massive storm on the East Coast will have a dramatic impact on the beef market. Choice beef values firmed 67 cents, although Select dropped $1.20 and movement was light at 163 loads.
  • Cash cattle trade got underway yesterday at steady to $1 lower prices compared with last week, but many feedlots are waiting on higher bids as they suspect packers are in need of supplies this week.


Lean hog futures are called mixed as traders reevaluate positions.

  • Traders will be busy watching outside markets and evening positions the last day of the month. But concerns there is more supply than demand at the current time will limit buying to short-covering.
  • The pork cutout value slipped 46 cents yesterday, but movement improved to 134.25 loads. This eases some concern about demand, but the fact remains that supplies are building seasonally.
  • The cash hog market is expected to be mostly steady. Some eastern Corn Belt plants are back to business today and are in need of supplies as they are planning a large Saturday kill to catch up after the brief storm-induced closure.
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