DTN's Quick Takes

Todd Hultman
DTN Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- March corn is down 6 1/2 cents, March soybeans are down 2 1/4 cents, and March Chicago wheat is down 4 3/4 cents. So far, corn is taking the worst of the Tuesday's selling after attempting a new six-month high overnight. Informa Economics released updated spring planting estimates, pegging corn at 90.5 million acres and soybeans at 88.6 million. The widespread expectation of lower corn plantings should help support corn prices this winter but is having little effect on Tuesday.

Posted 09:47 -- March corn is down 3 3/4 cents, March soybeans are down 3 1/2 cents, and March Chicago wheat is down 3 1/2 cents. All three grains have turned lower in spite of Tuesday morning's export sales news and it is fair to suspect South America's generally favorable growing weather is becoming a larger bearish concern as Brazil's soybean harvest makes progress. March soybean oil is one of the few grain-related contracts trading higher, up 0.24 after March palm oil was up 1.9% overnight.

Posted 08:35 -- After the 8:30 open, March corn is down 1/2 cent, March soybeans are up 2 1/2 cents, and March Chicago wheat is down 1 cent. Grains tried to trade higher overnight, but then fell back, even with new sales to start the day. At 8 a.m. CST, USDA said 10.1 million bushels (275,000 mt) of U.S. soybeans were sold to a combination of Mexico and unknown, 5.3 million bushels (145,000 mt) of which were for 2016-17. 4.9 million bushels (125,000 mt) of U.S. corn were sold to unknown for 2016-17.

Livestock

Posted 10:44 -- Firm gains are holding across livestock markets as the overall lack of support seen during the first hour of trade quickly washed away, allowing buyers to step back into the market. This could bring additional price support back into the complex as traders look for fundamental market stability. Additional support is likely to develop in live cattle markets as front month futures inch toward $121 per cwt. Even though wide price swings are not likely to develop, there could be some stability in the fact that slow but steady progress may be seen in both cattle and hog futures. Lean hog futures are holding 15 to 50 cent gains with the most significant support seen in front month futures.

Posted 09:31 -- Buyer support is slowly trickling back into the livestock market following mixed to slightly lower trade early Tuesday morning. Pressure seen in both lean hog futures and feeder cattle markets Monday is allowing for narrow position taking activity to develop, although any support seen in livestock markets is extremely light with several contract months holding gains of 10 cents per cwt or less. More focus will be placed on both cash market and meat value moves following the morning reports. Outside markets continue to play a huge role in traders' willingness to step back into the market. Front month live cattle futures continue to hold above $120.50 per cwt during early trade, with the focus on sustaining previous market support seen over the last several months.

(KA)

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