Johnston Pro Farmer Senior Markets Editor
as of 7:00 a.m. CT
All eyes remain on
outside markets... The stock market is set for a higher start, as
investors are pleased with weekend developments. World leaders met over the weekend
to work on fixing the world's financial crisis. With the Nasdaq and S&P futures
sharply higher, the stock market is expected to see a strong start. Crude oil
futures were higher, while the dollar was lower overnight, which supported grain
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Opening calls. These calls originate
more than three hours before the open -- use caution, things change::
Corn: 6 to 8 cents higher. Futures were higher overnight on short-covering,
expected strong start to stock market. Corn closed limit lower on Friday and for
the week, December corn was about 46 cents below the previous week's close. Typically,
the corn market would put in a seasonal low as harvest moves past the halfway
point. But the global economic crisis could delay a seasonal low this year.
12 to 15 cents higher. Futures were higher in overnight trade amid short-covering,
more positive outside markets. Soybeans closed limit lower on Friday, and for
the week, January beans were 83 cents below the previous week's close to do more
technical chart damage.
Wheat: 16 to 18 cents higher. Futures
were higher overnight amid short-covering and stronger outside markets. For the
week, December Chicago wheat finished the week about 75 cents below the previous
week's close as traders are growing increasingly concerned about the global financial
crisis. Until confidence is restored in the economy, bears will remain in control.
Cash cattle expectations:
Watching beef prices. Boxed beef prices continued to slide last week
and Choice cuts are now below $150. Until the beef market stabilizes, packers
will be reluctant to raise cash cattle prices even though feedlot supplies are
tightening. And until the cash and product markets show signs of a short-term
low, buying will be limited in cattle futures as traders fear reduced beef demand
amid the financial crisis.
Futures call: Firmer. Futures
are called firmer on ideas Friday's limit losses were overdone, as well as expectations
for a strong start on Wall Street. Futures are due for a period off short-covering
given oversold conditions. Still, momentum remains with bears.
hog expectations: Steady to weaker. Cash hog bids are expected to
start the week under pressure at most locations, as packers should have no problems
securing needed supplies amid heavy market-ready numbers. But with cutting margins
solidly above breakeven, packers have room to increase bids if hog movement is
slower than anticipated.
Futures call: Firmer. Futures
are expected to see a strong start on ideas recent losses are overdone and the
market is due for a bounce. But momentum remains with bears. Futures closed sharply
lower Friday, with deferred contracts leading losses. For the week, December hog
futures closed a dollar below the previous week's close. Price action will continue
to be strongly influenced by outside markets this week.