Johnston Pro Farmer Senior Markets Editor
as of 7:00 a.m. CT
Grain futures were sharply lower overnight as crude oil futures were
sharply lower and the dollar was sharply higher overnight.
negotiations between administration officials and congressional leaders resulted
in a deal being reached on a $700 billion bailout plan. The plan includes strict
accountability and oversight provisions, taxpayer protections, mortgage foreclosure
relief, limits on executive compensation and incremental payments to buy up troubled
assets. The House is expected to vote on the measure today and the Senate potentially
today or Wednesday. The weekend action came about after an apparent deal broke
apart late last week.
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calls. These calls originate more than three hours before the open
-- use caution, things change::
Corn: 12 to 16 cents lower.
Futures finished with double-digit losses Friday to erase nearly all of Monday's
strong gains. Outside markets played the major role in corn market price action
this week and that will likely be the case again this week. Aside from a close
watch on the economy, corn traders will also be watching weather, specifically
whether or not Mother Nature delivers the first widespread killing frost, as some
Soybeans: 29 to 32 cents lower. Friday's decline
brought futures closer to the week-ago levels, with January beans closed about
20 cents above the previous week's levels. This week's price action will continue
to be heavily influenced by outside markets.
Wheat: 15 to
17 cents lower. Futures started the week strong, but fell through support
levels today to end the week about even with week-ago levels. Price action next
week will largely be determined by outside markets.
cattle expectations: Watching beef trade. Sharp declines in boxed
beef prices last week signal a fundamental top in the cattle market. As a result,
traders come into the week expecting steady to lower cash cattle prices in the
Plains. In addition to fundamental concerns, cattle traders are also fighting
Futures call: Weaker. Last week's
price action was highly choppy, but produced very little in terms of net movement.
Economic concerns capped buyer interest in live cattle futures and also made feedlots
skittish on cash cattle negotiations. There's a very real likelihood economic
concerns will persist in trade next week. With talk of a short-term fundamental
top also hanging over the market, bears are likely to have momentum this week.
Cash hog expectations:
Steady to weaker. Last Friday's Hogs & Pigs data showed the market
hog inventory is even bigger than the trade expected. As a result, nearby hog
futures are expected to open the week under pressure. Seller interest may somewhat
be limited by expected strength in the cash hog market. Cash hog bids are expected
to open the week steady to firmer despite very heavy market-ready supplies.
Futures call: Mixed. Lean hog futures deteriorated last week to close
near the previous week's levels and remained within the downtrending channel.
Hog slaughter last week is estimated at 2.363 million head, heavier than last
week's lofty number and today's Hogs & Pigs Report suggests slaughter numbers
will continue to rise. Friday's Hogs & Pigs Report comes in near expectations
(All H&P at 102%, Kept for Breeding at 97% and Kept for Marketing at 103% of year-ago
levels) and should lead to bear spreading this morning.