DTN's Quick Takes

Todd Hultman
DTN Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- December corn is down 4 cents, November soybeans are down 1 1/4 cents, and December Chicago wheat is down 7 1/2 cents. Corn and wheat are stretching their losses ahead of USDA's 11 a.m. CDT report while Friday's weather is mostly favorable outside the eastern Midwest for row crop harvest and for winter wheat planting. The U.S. dollar index was lower earlier, but is now down 0.05 after Deutsche Bank is showing a 7% gain and possibly easing concerns of financial instability.

Posted 08:35 -- After the 8:30 open, December corn is down 2 3/4 cents, November soybeans are up 3/4 cent, and December Chicago wheat is down 2 1/4 cents. At 8 a.m. CDT, USDA said 7.3 million bushels (198,000 mt) of U.S. soybeans were sold to unknown destinations and another 4.3 million bushels (118,000 mt) were sold to China, both for 2016-17. It is the eight soybean sale announcement in the past nine trading days and should help November soybeans stay above the August low of $9.37. So far on Friday, grains are mixed, waiting for USDA's Grain Stocks report at 11 a.m. CDT.

Livestock

Posted 09:45 -- Sharp losses have developed across the entire livestock market with October live cattle futures leading live cattle markets lower with a $1.10 per cwt loss early in the session. Deferred feeder cattle futures remain weak on concerns of long-term supply issues. Lean hog futures continue to set new contract lows in all nearby contracts with triple-digit losses seen in December contracts where prices have now fallen below $46 per cwt. The expectation that traders will see increased hog numbers for marketing and replacements in the afternoon Hogs and Pigs report is adding to the market pressure. Little support is expected to develop through the morning as traders seem to have the course set for the rest of the day.

(KA)

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