Weather Watch Continues

June 20, 2012 01:11 AM

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Overnight highlights. Following are highlights of overnight trade (as of 6:15 a.m. CT) and opening livestock calls:

Corn: Marginally to 5 cents lower. Futures are seeing a slight setback overnight amid profit-taking following yesterday's gains. Traders are also taking a more cautious approach to the market this morning as they wait for rainfall totals from a system expected to move across the western Corn Belt today and overnight and head across the river into Illinois. Amounts are not expected to be significant, though. December corn's strong performance yesterday signals a near-term low has been posted, but followthrough above yesterday's high would confirm it.

Soybeans: 7 to 12 cents higher. Futures are enjoying light followthrough from yesterday's price surge, signaling traders are concerned about the lack of meaningful rain across the Corn Belt. A system is expected to drop light, scattered rains across the western Belt today and overnight and head east, but rains will only provide limited relief. November beans are pivoting around $13.91 this morning, with $14.00 key resistance.

Wheat: Mixed. Chicago wheat is slightly lower on spillover from corn futures, but Kansas City and Minneapolis are narrowly mixed. Pressure should be limited by reports that rains hampering wheat quality in Europe. Technically, wheat needs to see followthrough buying following yesterday's gains to signal a low has been posted.

Live cattle: Mixed. Another choppy day of price action is likely ahead as traders wait on the cash market for direction. Beef prices were 43 to 45 cents higher yesterday on solid (but not impressive) movement of 192 loads. This week's showlist is tighter, but there is concern beef prices have reached a level that is slowing demand.

Lean Hogs: Higher. Futures are called higher on surging pork cutout values, which were up $3.08 yesterday on increases in ribs, hams and bellies. Strength in the pork market signals retailers have turned their attention to featuring pork, which bodes well at a time when market-ready supplies are tightening. Packers' profit margins remain in the red, but have improved. The cash market is called steady to firmer again today.


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