Pro Farmer Senior Markets Editor
From Pro Farmer
Updated as of 7:00 a.m. CT
Reports add to bearish momentum...
Grain futures were sharply lower in overnight trade based on strength in the
dollar and weakness in the crude oil market. USDA reports are expected to add
to bearish momentum, with carryover figures for corn, soybeans and wheat coming
in above expectations.
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Opening calls. These calls originate
more than three hours before the open -- use caution, things change::
Corn: 25 to 30 cents lower. USDA raised the size of the corn crop
more than expected to 12.2 billion bushels. As a result, USDA raised its corn
carryover estimate to 1.154 billion bushels. Outside markets are also seen
supplying pressure this morning, with the dollar sharply higher and crude
oil under heavy pressure.
Soybeans: 40 to 50 cents lower. Traders, looking for a drop in the
size of the soybean crop, were surprised to see USDA raise the crop to 2.983
billion bushels. As a result, corn and soybean carryover estimates came in
above expectations, at 1.154 billion bu. and 220 million bu., respectively.
Outside markets are also seen supplying pressure this morning, with the dollar
sharply higher and crude oil under heavy pressure.
Wheat: 20 to 25 cents lower. Traders were looking for USDA to trim
their wheat carryover figure based on higher-than-expected quarterly wheat
usage, but USDA raised the estimate to 601 million bushels. Outside markets
are also seen supplying pressure this morning, with the dollar sharply higher
and crude oil under heavy pressure.
Cash cattle expectations: Cash trade
complete. Beef prices have fallen sharply this week, resulting in sharply
lower cash cattle trade between $91 and $93.
Futures call: Lower. Futures are called lower based on concerns about
outside markets and the beef market. Traders have also kept a close eye on
the dollar and stock market this week, with rising concern about the U.S.
and global economy lowering demand expectations as consumers' reign in spending.
Cash hog expectations: Steady to
weaker. The cash hog market is expected to remain under pressure as packers
work to improve profit margins amid falling pork values and plentiful supplies.
Futures call: Steady to lower. Lean hog futures are called steady
to weaker, with downside risk for nearby contracts limited by the discount
futures hold to the cash index. But given the highly price-negative outside
markets this morning, losses could extend sharply.