Retail Frenzy Lifts Global Markets

November 28, 2011 12:24 AM

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Overnight highlights. Following are highlights of overnight trade and opening calls:

Corn: 10 to 12 cents higher. Futures were lifted overnight by help from dollar weakness. The U.S. dollar index more than erased Friday's gains as global stock markets reacted to a strong start to the U.S. holiday shopping season. I wasn't a part of the madness that resulted in the most robust start to the shopping season, as sales were reportedly up 16% from year-ago at $52.4 billion. March corn is pivoting around $6.00 this morning.

Soybeans: 12 to 15 cents higher. Futures were stronger overnight on help from outside markets. The U.S. dollar index is weaker, but remains in the strong uptrend from the October low. Concerns surrounding the euro-zone remain, but a strong start to the holiday buying season weakened the U.S. dollar overnight. Without fresh news, upside potential in the bean pit will be limited to short-covering as bears have the near-term technical advantage.

Wheat: 9 to 11 cents higher. Wheat remains in a follower's role and benefited from positive outside markets and spillover from corn overnight. There's little fresh news for the market to digest, as U.S. exports remain lackluster. Bears hold the near-term technical advantage, as traders aren't looking for value buys at the present time due to macro-global economic concerns.

Live cattle: Steady to higher. Futures are expected to benefit from positive outside markets. The U.S. stock market is expected to follow the lead from the global market and open firmer on positive retail sales signals over the weekend. Traders will be keeping a close eye on the beef market to start the week after last week's cash cattle traded between $124 and $127 in the Central and Southern Plains. Beef prices have held up strong thanks to strong export demand, but focus is expected to switch to pork features in the near-term.

Lean Hogs: Steady to higher. Futures are expected to see a lift on spillover from positive outside markets. But upside potential will be limited by a mostly steady start to the cash market for the week. Demand for hogs is varied, but most locations are expected to offer steady bids to start the week thanks to profitable margins. There is some concerns lots backed up slightly over the holiday break, but demand for hogs is thought to be strong to start the week.


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