Market Snapshot, Noon CT (VIP) -- November 26, 2012

November 26, 2012 06:03 AM
 

Corn futures are 2 to 4 cents higher on technical buying and export hopes.

  • Corn futures remain supported by demand hopes after Friday's weekly export sales data showed an uptick in foreign buying.
  • However, weekly export inspections of 15.920 million bu. were within expectations and the cumulative pace slipped from last week.
  • Slight strength in the U.S. dollar index is also limiting buying interest in corn futures.
  • Gulf corn basis remains steady at midday.
  • December corn is pivoting around resistance at last week's high of $7.49.

 

Soybean futures have trimmed gains to trade mostly 3 to 5 cents higher.

  • Soybean futures are trading near session lows at midday as negative outside markets spurred some profit-taking.
  • Futures also softened after a disappointing weekly export inspections report that showed inspections of 45.598 million bu., which was below expectations. Still, inspections are running well ahead of the "needed" pace.
  • This morning USDA announced a 20,000 MT soyoil sale to unknown destinations for 2012-13. Since Nov. 14, USDA has announced daily soyoil sales of 188,000 MT to unknown destinations and China.
  • Concerns with South America weather, especially too-wet conditions in Argentina, are also helping to keep futures in positive territory. Areas of Parana in Brazil are in need of rains after hot temps last week. However, Mato Grosso enjoyed rains over the weekend.
  • Gulf soybean basis is steady this morning.

 

Wheat futures are 6 to 8 cents higher in Kansas City, with Chicago and Minneapolis futures mostly 2 to 6 cents higher.

  • Wheat futures are being supported by worsening drought concerns in the Plains. Traders expect this afternoon's final crop condition report of the fall to show further deterioration of the HRW crop.
  • Spillover from corn and soybeans is also supportive, although mild strength in the U.S. dollar is keeping traders from actively buying wheat.
  • Traders are hopeful demand for U.S. wheat will improve as Black Sea origin supplies tighten. However, this morning's weekly export inspections report showed wheat inspections of just 7.838 million bu., which was below expectations.

 

Live cattle futures are trading slightly to moderately lower. Feeder cattle futures are also weaker.

  • Negative outside markets have led to a softening of live cattle futures, although pressure is being limited.
  • A softer start to the boxed beef market is also behind the profit-taking, as Choice values are down 38 cents and Select is down 64 cents this morning on light movement of 58 loads.
  • Traders are waiting on a showlist count before forming this week's cash opinions. But strong cash sales volume last week leads to expectations market-ready supplies are tighter this week. Cash cattle traded $2 to $3 higher last week at $127 to $128 in the Plains.
  • Feeder cattle futures are mostly around 40 to 50 cents lower this morning on spillover from live cattle and slight strength in the corn market.

 

Lean hog futures have trimmed early gains, but remain mildly higher at midday.

  • Lean hog futures have moved off session highs as traders opt to take some profits out of the market due to a slightly negative tone in outside markets.
  • But pressure is being limited by steady to firmer cash hog bids as some packers found themselves short-bought after the holiday.
  • Buying is also being limited by the $4-plus premium December lean hog futures hold to the cash index.
  • December lean hog futures touched the psychological $83.00 level before setting back and the contract remains in the uptrending channel established from the September high.
     
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