Traders Waiting on Export Sales Data

January 31, 2013 12:36 AM

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Overnight highlights. Following are opening grain and livestock calls at 6:35 a.m. CT:

Corn: Steady to 2 cents lower. Following yesterday's bullish reversals, futures are weaker this morning amid profit-taking, partially spurred by strength in the dollar index. Traders are waiting on this morning's weekly export sales data, which isn't expected to reflect a pickup in demand, although recent Gulf basis improvements hint of some purchases.

Soybeans:7 to 9 cents lower. Futures are weaker this morning following yesterday's sharp gains due to profit-taking. Futures were supported yesterday by concerns about drought in Argentina and southern Brazil and forecasts for flooding rains in northern Brazil this weekend. Price action this morning will also be directed by the weekly export sales data, which should reflect solid demand.

Wheat: 1 to 3 cents lower. Without fresh news to digest, wheat futures are once again in the follower's role. Wheat traders responded yesterday to signals Russia could soon cap exports, although this has been talked about for months.

Live cattle: Mixed. Futures should favor a firmer tone in mixed trade today as traders respond to yesterday's higher cash cattle trade at $125 and prepare for tomorrow afternoon's Cattle Inventory Report. Nearby futures are trading at a premium to this week's cash trade and the boxed beef prices have slipped by more than $7 over the last two weeks. Frigid temps should also help to limit pressure on futures, as it limits weight gain.

Lean hogs: Steady to lower. Futures are expected to be pressured this morning by yesterday's $1.12 drop in pork cutout values, which pushed packers' profit margins back into the red. Frigid temps should help to limit pressure on futures, although improved road conditions today should have producers catching up on marketings.


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