This morning's employment report from the Department of Labor showed fewer-than-expected non-farm payrolls of 96,000 were added in August. Investors expected a gain of around 125,000. The unemployment rate edged down from 8.3% last month to 8.1% due to a drop in the number of people actively searching for jobs. The U.S. dollar index immediately softened following the disappointing jobs data, with gold futures higher. But so far, this hasn't resulted in widespread commodity buying.
Corn futures are 2 to 4 cents lower on disappointing weekly export sales.
- Net sales reductions of 104,200 metric tons (MT) for 2011-12 and 129,200 MT for 2012-13 were well below expectations and reflect price rationing.
- There's little other fresh news for the market to digest and traders expect harvest-related hedge pressure to build in the coming days.
- Still, pressure is being limited by tight supplies.
Soybean futures are 10 to 17 cents lower, with nearbys leading losses.
- Weekly soybean sales of 5,100 MT for 2011-12 and 520,600 MT for 2012-13 were below expectations.
- Traders are also evening positions ahead of the weekend. Given the fact funds hold a near-record long positions, there is significant room to the downside if liquidation pressure builds.
Wheat futures are favoring a weaker tone in mixed trade on spillover from neighboring pits.
- Weekly wheat sales of 554,400 MT for 2012-13 and 19,000 MT for 2013-14 were within expectations, but buying is being limited by spillover from neighboring pits.
- Pressure is being limited by concerns about tightening supplies in the Black Sea region.
Live cattle futures are called to open mixed as traders wait on cash trade to begin.
- Nearby futures are trading at a premium to last week's $122 to $123 cash trade, as they expect further gains to be made this week due to strength in the beef market.
- Choice beef values were 42 cents higher yesterday and Select rose by just 3 cents, but movement was strong at 209 loads.
- Feeder futures are expected to be mixed, with pressure limited by weakness in the corn market.
Lean hog futures are called lower on concerns about building supplies.
- Futures are due for a corrective bounce, but buying will be limited as traders' attitudes are increasingly bearish due to building supplies.
- Pork cutout values firmed 50 cents yesterday, but are down sharply for the week.
- Packers are enjoying profitable margins, but they aren't willing to raise bids as they are having no difficulty securing supplies.