DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

OMAHA (DTN) -- As we near the close, December corn is down 3 cents, November soybeans are down 1 3/4 cents and December Chicago wheat is up 3/4 cent. Trading has been quiet again on Friday as anticipated this morning, but December corn continues its slide to new lows, unable to convince potential buyers to jump in just yet. Hurricane Harvey will be watched over the weekend with interest along the Mississippi River for grain traffic conditions. In outside markets, the September U.S. dollar index is down 0.56 and October crude oil is up 30 cents a barrel.

Posted 11:49 -- December corn is down 2 1/2 cents, November soybeans are down 3 3/4 cents and December Chicago wheat is down 3/4 cent. Trading volume is light again and grains are sagging lower with little sign of argument or even interest from potential buyers. In spite of concerns about Hurricane Harvey hitting the Texas coast, November rough rice is down $.005 and December cotton is down 1.68 cents. Energy futures have also backed down and are now mixed, while the September U.S. dollar index is down 0.56.

Posted 10:10 -- December corn is down 1 cent, November soybeans are down 2 1/4 cents and December Chicago wheat is up 2 1/2 cents. Friday's trading is quiet so far, but at least wheat is holding Thursday's gains after a long absence of significant buying activity. December soybean oil is unchanged, still holding Wednesday's gain after U.S. biodiesel producers received a favorable ruling from the Commerce Department this week. The September U.S. dollar index is down 0.46 after Federal Reserve Chairman Yellen said that banking reforms since 2008 have been good for the economy and have not unduly restricted credit, reported Dow Jones.

Posted 08:33 -- After the 8:30 open, December corn is down 1 cent, November soybeans are down 1 1/2 cents, and December Chicago wheat is unchanged. Grains are off to a quiet start early Friday and that may be a clue as to how the rest of the day goes as much of the country's attention is on the approach of Hurricane Harvey, a possible category three hurricane when it reaches the Texas coast either late Friday or early Saturday. At 8 a.m. CDT, USDA said 4.85 million bushels (132,000 mt) of U.S. soybeans were sold to China for 2017-18. 105,500 mt of U.S. soybean meal were sold to Thailand for 2017-18.

Livestock

Posted 12:01 -- Trade remains limited in livestock markets with little to no additional direction expected to be seen before the closing bell in either cattle or hog markets. Moderate to firm losses continue to hold across the hog complex as traders are focusing on the pressure in the cash hog markets and continued supply levels available to the market despite the ability to actively clear pork product in a timely fashion. Cattle futures remain higher, but traders are unwilling to step out of current positions before the cattle on feed report that will be released Friday afternoon and expected to show increased placement numbers. This could limit buying activity when trade starts Monday, but a portion of that softness has already been factored into the complex this week.

Posted 10:44 -- Activity across the livestock market has slowed significantly midmorning with cattle markets still holding moderate to firm gains, but well below session highs. Buyers seem to be taking a more thoughtful approach to what may be seen in the cattle on feed report at the end of the day. Live cattle futures are holding gains of 50 to 70 cents per cwt midmorning. Hog futures remain sluggish with the focus still on the lack of support in cash hog trade and more focus on lack of recent support in pork values. This has put more pressure on most contracts as trade is holding prices 30 to 60 cents lower in all but deferred contracts. Light trade is expected to be seen through the rest of the complex.

Posted 10:10 --- Hog futures have eroded through the morning Friday as nearby October futures are holding losses of 80 cents per cwt as traders focus on end-of-week trade. The early support in deferred contracts has not eroded in all but tail end contracts with the concern surrounding losses in cash hog prices impacting the entire complex. Cattle futures remain higher, although prices are well off of session highs as traders remain focused on the upcoming cattle on feed report and remain cautious concerning the uncertain numbers that may develop.

(BE)