Plenty of Report Surprises To Go Around

March 30, 2012 02:56 AM

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Overnight highlights. Following are highlights of overnight trade:

Corn: 5 to 10 cents higher. Futures are expected to see spillover from neighboring pits, as this morning's acreage report showed producers intend to plant a record 95.9 million acres to corn this spring. WOWSA... the top end of trade guesses was 95.7 million! So this figure is WELL above traders' expectations and signals the market has done its job of bidding for acres. While this is bearish, the grain stocks report at 6.01 billion bu. came in below traders' expectations and corn is expected to benefit from spillover from soybeans. But look out... this will be a volatile day of price action!

Soybeans: 20 to 40 cents higher. USDA issued a bullish acreage number for soybean futures this morning and the result could be a limit-higher reaction. At 73.9 million acres, USDA's figure came in well below even the lowest trade guess heading into the report to reflect soybean futures HAVE NOT YET done their job of bidding for acres... with that said... soybeans are expected to extend higher today!

Wheat: 10 to 20 cents higher. At 55.9 million planted all wheat acres, the estimate came in below the lowest pre-report trade guess and well below the average trade guess of 57.6 million acres. The Grain Stocks Report showed all wheat stocks below the average trade guess of 1.2 billion bushels. All in all, wheat futures will remain in a follower's role and are expected to be lifted by soybeans this morning.

Live cattle: Mixed. Following yesterday's sharp losses, futures are due for a corrective bounce, but buying will be limited to short-covering as attitudes are bearish. Beef values have softened considerably this week, raising concerns about demand amid rising fuel costs ahead of the official start to grilling season. This week's cash cattle trade is largely wrapped up for the week, with trade ranging $125 in the Southern Plains to $127 in Nebraska. April live cattle are trading at a discount to the cash market, which should also help to firm nearby futures today.

Lean Hogs: Mixed. Futures are called mixed amid spreading ahead of this afternoon's Hogs & Pigs Report. The report is expected to show All Hogs & Pigs at 101.7%, Kept for Breeding at 100.3% and Kept for Marketing at 101.8% of year-ago levels. Meanwhile, pork cutout values slipped 77 cents yesterday raising concerns about demand and maintaining pressure on the cash hog market.


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