Johnston Pro Farmer Senior Markets Editor
improves, SRW declines... After USDA's crop condition ratings are plugged
into our weighted tables, it shows the condition of the hard red winter wheat
crop improved slightly, while soft red winter wheat declined slightly. HRW wheat
improved about 3.5 points to stand at 309.71, while SRW declined about 2.5 points
to stand at 369.06 points.
calls. These calls originate more than three hours before the open
-- use caution, things change:
Corn: 4 to 5 cents higher.
Futures were firmer overnight on help from outside markets and spillover from
yesterday's gains. Futures opened weaker, but ended 2 to 4 cents higher, as traders
viewed a weaker open as a buying opportunity. Early pressure came on spillover
from Friday's round of profit-taking, although futures firmed on help from outside
markets. July corn gapped lower on the open, but filled the gap and closed above
the $4.20 level. While off session highs, spillover buying this morning would
reopen upside potential to the May high of $4.32.
Soybeans: 10 to
14 cents higher. Futures were higher overnight on spillover from yesterday's
gains and help from crude oil overnight. Futures finished 11 to 16 cents higher,
which was near session highs. A weaker open was seen as a buying opportunity.
July soybean futures remain in the uptrend from the March low. Initial resistance
is at last Friday's high of $11.56 1/4. Next strong resistance on the daily chart
doesn't come until the $12.62 to $12.66 range. To the downside, last Monday's
low at $10.86 1/2 is key near-term support.
Wheat: 3 to 4 cents higher.
Futures were stronger overnight on help from neighboring pits and spillover
from yesterday's gains. Futures posted double-digit gains in most contracts at
all three exchanges to start the week. Wheat futures used strong spillover support
from widespread buying in the commodity world along with price-positive outside
markets to work higher. July Chicago wheat futures missed a bullish reversal when
the contract slipped below last Friday's high on the close.
Cash cattle expectations: Watching
beef trade. Choice beef prices were 59 cents higher, but Select cuts dropped
51 cents, while packers moved 249 loads Monday. While not a poor start, the beef
market must be strong in both price and movement to encourage packers to raise
cash cattle bids in the Plains again this week.
call: Steady to firmer. Live cattle were firmer through the day, closing
15 to 60
cents higher. Strength in outside markets translated to a
solid start in the live cattle pit for the week. The Dow Jones Industrial Average
was stronger on clues of economic stability, which traders say is a signal beef
demand should also be stabilizing.
hog expectations: Steady to weaker. The average pork cutout value was
77 cents lower Monday while movement was light at only 40.3 loads. That will keep
cash hog bids steady to weaker across the Midwest as packer margins are deep in
the red. If margins remain poor, some packers may choose to reduce late-week kill
runs instead of raising cash bids to attract more supplies.
Futures call: Mixed. Futures opened the week under pressure, but closed
mostly firmer. Another day of choppy price action is likely. June lean hog futures
are in the middle of the short-term trading range from the contract low at $63.70
to the May 12 high at $69.23. A drop below the contract low would threaten to
accelerate the downtrend. To the upside, bulls must fill the April 27 chart gap
at $71.50 to confirm a short-term low on the daily chart.