DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

Posted 12:06 -- Grains are green at High Noon, led by the always entertaining winter wheat markets. Dec Chicago has rallied as much as 6 3/4 cents with Dec KC not far behind at 6 1/4. Dec Minneapolis wheat has been has much as 6 cents higher before pulling back to a 4-cent gain. Dec corn is now fractionally higher, a big move these days, and Nov beans have erased all of the 5 1/2-cent loss seen earlier to rally as much as 2 3/4 cents higher. At noon the contract is fractionally higher. Cotton is gaining momentum, mostly on light noncommercial buying after an early round of commercial selling. Gold is still down $13 while crude oil is up $0.27. The U.S. dollar index has grown quiet, up 0.37, and the DJIA is still showing a gain of 18 points.

Posted 10:51 -- Grains have shown a little bullish momentum over the last hour or so, with the wheat complex all in the green. December Minneapolis is up 4 cents, Dec KC is 2 cents higher, and Dec Chicago is up 3 cents. Meanwhile corn has trimmed its loss to fractions while soybeans show a loss of only 1 1/2 cents. Regarding the latter, the rally off earlier lows could be nothing more than a quiet, normal “noon balloon” (midday rally against an early sell-off). If so, it would not be surprising to see the market come under pressure again as the day wears on. The U.S. dollar index is up 0.38 and the DJIA is showing an 8-point gain. Gold is off $13 and crude oil is up $0.25. Cotton has rallied, with early commercial pressure subsiding leaving a bit of a vacuum above the market.

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Posted 09:49 -- Grains remain under pressure, though recovering from early lows. Nov beans dropped as much as 5 1/2 cents, but now sit only 2 1/2 cents lower. Dec corn was within a tick of being 4 cents lower and still show a 3-cent loss. Dec Chicago wheat has edged back to unchanged, Dec KC is down 1 cent and Dec Minneapolis is 3 1/2 cents above Tuesday's close. The U.S. dollar index remains strong, up 0.47, but down from its early rally of 0.60. The DJIA has also backed off, showing a gain of only 13 points. Gold remains under pressure, down $13.00. Cotton continues to see commercial selling in the December contract, while crude oil is quietly $0.15 higher.

Posted 08:36 -- Grain and oilseed markets are mostly lower as Wednesday’s session gets under way, with only Minneapolis spring wheat showing a gain. Nov beans are down 4 cents, Dec corn is off 2 cents, and winter wheat is down 2 (Chicago) to 3 (Kansas City) cents. Outside commodities are mixed, just as they were overnight, with gold getting hit to the tune of $14 while crude oil has rallied $0.30. Cotton is off 0.33 on light commercial selling. The U.S. dollar index continues to chug higher, gaining another 0.54 while the DJIA is up 75 points early.

Livestock

OMAHA (DTN) -- Strong gains in cattle trade has continued to hold at midday with traders looking for support to carry through the end of the session. Live cattle futures are trading $1.20 to $1.70 per cwt higher, with the exception of the lightly traded and generally inactive October live cattle contracts, which are 15 cents higher in sluggish market movement. The feeder cattle complex continues to be the driving force of the renewed buyer activity with gains from $2 to $3.50 per cwt toward the end of the session. December and February lean hog futures are holding strong triple-digit gains as buyers are stepping back into the market following the recent market pressure.

Posted 10:54 -- Gains across the cattle complex have slightly pulled away from session highs in early trade Wednesday. Buyer support remains firm, but traders are taking a much more moderate approach to the market as the direction of the complex continues to be based on short-covering following limit losses Monday. Most nearby live cattle futures continue to hold gains of $1 per cwt, while feeder cattle trade is trading $1 to $2 per cwt higher midmorning. Lean hog futures have posted gains in all but front month October contracts. Traders are trying to slowly transition from October to December contract months which is creating the continued pressure in spot month contracts. December through April contracts are trading 30 cents to 80 cents per cwt higher as traders remain focused on the ability regain market ground following the pressure over the last couple of weeks.

Posted 10:17 -- Triple-digit gains seen in cattle markets that developed at opening bell has continued to gain support through the morning Wednesday. This is pushing feeder cattle futures $1.50 to $2.50 per cwt higher as traders continue to focus on longer-term commercial buyer interest moving back into the market and regaining early week losses. Live cattle futures are well supported, but much less aggressive compared to the feeder cattle market with most contracts holding gains from $1 to $1.30 per cwt higher. Lean hog futures have gained support by slowly shifting higher through the morning. Trade is currently steady to 55 cents per cwt higher, although the overall long-term support in the market remains uncertain.

(BE)

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