Published on: 16:49PM Feb 17, 2010
|March corn||360||-7 1/4||359.5||368|
|March wheat||494 3/4||-10 1/4||492.5||504.75|
|March beans||951 1/2||-14||948||964|
|Apr live cattle||92.15||-0.025||91.70||92.20|
|Apr lean hogs||69.200||0.92||67.98||69.275|
Corn, soybeans and wheat closed lower for the day. Today’s action was nearly the complete opposite of yesterday as those gains were given back. The dollar was sharply higher and traded above yesterday’s range. The early week volatility has led to large ranges over the past two days, but the end result is prices close to last Friday’s close. This sideways to lower action will likely continue for the remainder of this month as current fundamentals do not look to change anytime soon. Of course, the March reports will be significant to agricultural markets, but they are still several weeks away. Until then, sellers will be ready to step forward as prices approach levels seen right after the January report.
News from China will remain light as their markets are closed for the remainder of the week in observance of their New Year. Export sales will be out Friday. Once Chinese markets resume traders will focus on where China purchases soybeans. Large South American crops and harvest increasing will take away from American purchasing. On a side note, the CME Group is set to begin trading a DDG contract on Apr 26; for details check: http://cmegroup.mediaroom.com/index.php?s=43&item=2986&pagetemplate=article This contract will open futures up to a “corn crush” and provide ethanol plants and DDG end users a new avenue of pricing.