Soybeans Lead Overnight Gains Amid Disappointing Argentine Rains

February 6, 2012 12:07 AM
 

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

Corn: Mixed. Nearbys are mostly around 2 cents higher overnight, with deferreds steady to weaker. Strength in the U.S. dollar index is limiting buying, with pressure limited by strong demand. Resistance for March corn stands at last week's high of $6.50. A move above this level would open the door for a test of resistance at the January high of $6.64 1/4.

Soybeans: 2 to 8 cents higher. Futures are seeing a boost this morning from a lack of widespread rainfall across dry areas of Argentina over the weekend. While around 70% of Cordoba received rains, coverage was much more scattered across Santa Fe, Buenos Aires and the La Pampa regions. Coverage was also light on southern Brazil. March beans climbed above $12.40 overnight.

Wheat: Mixed. Similar to corn, wheat futures were mixed overnight, with nearbys firmer. Strength in the U.S. dollar is coming from Friday's positive jobs report, although there is concern about the lack of a debt-reducing agreement in Greece over the weekend. Wheat traders continue to be concerned about the crop in northern Europe and the FSU, but need fresh news to reignite bulls.

Live cattle: Mixed. Futures are expected to be mixed this morning, as traders wait to see the direction of the beef market. Cash cattle trade picked up at $123 late on Friday. February live cattle are trading in line with the cash market, so key will be if the beef market can turnaround this week.

Lean Hogs: Mixed. Futures are called mixed as traders take a cautious approach to the market as they wait on direction from the cash market. Demand for hogs isn't expected to be strong due to packers' negative profit margins, but market-ready supplies have lightened. Early expectations are for steady to weaker bids.


 

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