DTN's Quick Takes

Todd Hultman
DTN Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- As we near the close, March corn is up 2 1/2 cents, January soybeans are up 4 3/4 cents, and March Chicago wheat is up 2 cents. Grains have shaken off the bearish effects of Friday's higher world ending stocks estimates and are once again trading a little higher. January soybean meal is up $3.00. Trading volume has been light in grains and other commodities are mixed with the U.S. dollar index up 0.55.

Posted 11:52 -- March corn is down 1 1/2 cents, January soybeans are down 1/2 cent, and March Chicago wheat is down 1 1/2 cents. All three grains are quietly lower after USDA kept their U.S. estimates unchanged for all three grains. USDA's estimates of world ending stocks were increased more than expected for all three, giving Friday's report a moderately bearish impact.

Posted 09:46 -- March corn is up 3 cents, January soybeans are up 7 3/4 cents, and March Chicago wheat is down 1 3/4 cents. Corn and soybeans are pushing higher early on very light volume ahead of USDA's 11 a.m. CST report. Temperatures dipped into the teens in Kansas Friday morning, but K.C. wheat traders are showing no concern, having seen this scenario many times before. The U.S. dollar index remains a bearish influence on grains and is up 0.53, back near its November high with many expecting a rate hike later this month.

Posted 08:37 -- After the 8:30 open, March corn is up 1 1/4 cents, January soybeans are up 3 3/4 cents, and March Chicago wheat is down 1 cent. At 8 a.m., USDA said 4.85 million bushels (132,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17, the fifth consecutive day we have seen a soybean sale reported. USDA will release its next WASDE report at 11 a.m. CST. Numbers are not expected to change much, but surprises are always possible.

Livestock

Posted 12:05 -- Losses have moderated through the live cattle and feeder cattle futures market. The early pressure has been cut in half at midday with losses seen from 60 to 80 cents per cwt. There is expected to be some additional price shifts through the end of the trading session as trade volume remains extremely light and may bring in additional position taking. This is still leaving the market in a bearish short-term market shift, as the pullback through the week is not only affecting futures trade, but has also sparked pressure in cash markets through the end of the week. Lean hog futures are trading mostly lower with traders solely focusing on position-taking at the end of the week.

Posted 10:45 -- Triple-digit losses have quickly developed in cattle futures once again, and this pressure has held through the first hour of trade despite volume remaining very light. Feeder cattle futures are leading the late-week losses with markets trading $1.30 to $1.65 per cwt lower although trade volume remains sluggish. There is likely to remain limited trade activity through most of the morning with traders focusing on additional cash market trade as well as the moves in outside markets associated with the release of the USDA supply and demand report and impact on the grain complex. Lean hog futures are mixed in quiet trade through much of the morning with late week position taking developing.

(KA)

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