DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

OMAHA (DTN) -- As we near the close, July corn is up 6 1/4 cents, July soybeans are up 8 3/4 cents, July Chicago wheat is up 10 1/2 cents. July K.C. wheat is up 13 cents, showing concern about the condition of this year's winter wheat crops. July soybean oil is up 0.53 and July canola is up C$2.40 as oils continue to challenge their recent highs. Commodities in general are mostly higher Friday while the June U.S. dollar index is down 0.77, on track for a 2% drop this week.

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Posted 11:49 -- July corn is up 6 1/4 cents, July soybeans are up 9 1/2 cents, July Chicago wheat is up 6 3/4 cents. Grains are holding their gains Thursday with heavy rain amounts in the seven-day forecast, especially for the Southern Plains and eastern U.S., keeping concerns alive about this year's ability to get crops planted or, in some cases re-planted, especially corn. July K.C. wheat is trading up 9 3/4 cents as these latest concerns of excess rain add to a number of problems winter wheat has already seen in 2017.

Posted 11:13 -- July corn is up 5 1/2 cents, July soybeans are up 10 cents, July Chicago wheat is up 5 cents. All three are benefitting from an early response of commercial buying after Thursday's big drop in Brazil's real. July soybean oil is up 0.34 after July palm oil posted its highest close in eight weeks overnight. July K.C. wheat is up 7 cents after severe storms hit Kansas and Oklahoma late Thursday. The June U.S. dollar index is down 0.63.

Posted 08:39 -- After the 8:30 open, July corn is up 4 1/2 cents, July soybeans are up 6 3/4 cents, July Chicago wheat is up 4 cents and the June Brazilian real is up 1.4%. It appears that the dust may have settled after Thursday's unexpected drop in Brazil's currency which sent corn and soybeans lower. Traders are once again noticing rain on the weather map interfering with spring planting. In spite of this week's scandal-ridden news, the stock market and several other commodities are trading higher -- a quiet return of noncommercials back to higher-risk assets.

Livestock

Posted 12:02 -- Livestock futures remain inactive at midday, trading in the same ranges as seen through most of the morning. The extremely light trading volume seen Friday morning has kept most traders out of the market and unwilling to move back into the complex until next week. Lean hog futures are narrowly mixed with June futures holding light losses. Firm gains are seen in both live cattle and live cattle contracts. The current move above $123 per cwt in June live cattle contracts supports additional commercial buying support.

Posted 11:14 -- Lean hog futures are mixed in a narrow range midmorning with most traders watching from the sidelines as the clock ticks toward the end of the week and the focus on sluggish market fundaments limits additional market movement throughout the entire complex. June futures continues to hold a narrow 30 cent loss, while the remainder of summer contracts have trickled higher gains from 2 to 25 cents even though buyer support remains minimal. Cattle buying remains light in the futures market with prices higher but unable to show additional support from early activity. Nearby live cattle markets are holding gains from 60 to 80 cents, and likely to carry this support into closing bell with little additional movement developing through the end of the session.

Posted 09:42 -- Moderate buyer support moved back into cattle futures during the first hour of trade with 50- to 70-cent gains seen in live cattle and feeder cattle contracts as the initial selling pressure quickly ran out of steam within the first few minutes of trade. The pressure in cash markets through the week appears to be creating some market stability in the complex and could be creating a market floor in the complex, which may draw commercial buyers back to the table over the next few trading sessions. It is uncertain just how much additional momentum this trade support will have, but market stability at this point is a welcome sign. Lean hog futures are mixed in a very narrow trading range as the focus remains focused on narrow losses in cash hog values over the last couple of days.

(KA)

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