Soybeans Are the Leader in the Grain Market

December 17, 2012 12:26 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:25 a.m. CT) and opening livestock calls:

Corn: Mixed. March through July corn is narrowly mixed, with the rest of the market mostly 2 to 4 cents higher on spillover from soybeans. Technically, corn remains in its sideways trading range and there's little fresh news for the market to digest. Planting delays in Argentina are raising concerns about acres being switched to soybeans, although traders say this is factored into prices.

Soybeans: 2 to 11 cents higher. Soybean futures are the upside leader in the grain markets again due to ongoing strong demand. Meanwhile, favorable weather across Brazil is limiting buying. More rains are in the forecast for this week to sustain the crop. Meanwhile, outside markets are taking on a slightly bearish posture, as the U.S. dollar index is weaker.

Wheat: Mostly firmer. Nearby wheat futures are seeing spillover from neighboring pits, although Chicago wheat is mixed. With little fresh news for the market to digest, buying is being limited to spillover. Last week's technical chart damage has left traders hesitant to reestablish long positions in the wheat market as they have grown tired of waiting on fresh demand news to surface.

Live cattle: Mixed. Futures are expected to start the day mixed as traders watch cash signals and are encouraged by last week's 50 cent higher trade across most of the Plains at $124.50. But the beef market needs to strengthen in order to build on last week's cash improvement, especially with nearby futures trading at a premium to last week's cash trade.

Lean hogs: Weaker. Futures are expected to be pressured this morning by concerns about packer demand. Pork cutout values slipped $1.60 on Friday to push packers' profit margins back into the red. As a result, the cash hog market is called steady to lower to start the week as packers say supplies remain plentiful.


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