DTN's Quick Takes

Darin Newsom
DTN Senior Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- Well, it turns out the midday sell-off in corn and wheat was not a normal “noon swoon,” but rather a lack of interest. With the trading session moving to its final quarter-lap (15 minutes) corn is still down 1 cent, Chicago wheat is now off 3 cents, KC wheat has slipped 2 cents and Minneapolis is fractionally lower. Nov soybeans are holding on to only a fractional gain, with the carry in the November-to-January spread touching 11 cents. Oats have seen its rally trimmed to a penny while cotton continues to show a small gain. Gold has turned lower again, down $0.60, while crude oil is off $0.39. The U.S. dollar index is still showing a loss of 0.23 while the DJIA has trimmed its sell-off back to 122 points.

Posted 12:07 -- Corn and winter wheat turned lower during midday, in a move that could be nothing more than a normal "noon swoon" (downward move against the earlier rally, usually on low volume). Dec corn is fractionally lower, Chicago wheat is down a penny and KC Dec is fractionally lower. Soybeans continue to show a gain of 2 cents. Oats continue to rally, though Wednesday's session has seen commercial buying back off in favor of noncommercial interest. The Dec contract is up 3 1/2 cents while March has rallied 4 3/4 cents. Gold has moved to the plus-side, up $1.20, on support from a lower U.S. dollar index (down 0.29) and break in the DJIA (off 170 points). The energy complex is now lower across the board with crude down $0.45.

Posted 10:52 -- Grain and oilseed markets are sitting quietly higher near midday with corn fractionally above Tuesday’s close, soybeans up 2 cents and wheat markets generally up 1 cent. Other commodity sectors are mostly lower with pressure seen in both metals and energies, despite the U.S. dollar index being down 0.24. Gold is of $2.40 and crude is down $0.35. The DJIA has moved to a triple-digit loss, off 110 points for the day. Cotton continues to show a small gain, while rice and oats also post rallies.

Posted 09:48 -- The wheat complex has quietly moved to a new high for the day, supported by the 0.30 sell-off in the U.S. dollar index. Chicago Dec wheat is up 3 cents, Kansas City 4 cents and Minneapolis now finds itself 2 cents higher. Meanwhile, soybeans have lost some of the earlier bullish momentum with both November and January up 2 cents. Dec corn is only fractionally higher. Outside markets remain mixed though gold and crude oil are both lower. The DJIA has also come under pressure, off 74 points.

Posted 08:37 -- Grain and oilseeds continue to trade higher shortly after Wednesday’s open with corn 1 1/2 cents higher, soybeans 6 1/2 cents higher, and Chicago wheat up 1 1/2 cents. Early activity is quiet. Cotton is rallying again, supported by commercial buying in the December contract. The rest of the softs complex is most higher, with only cocoa below unchanged. Energies are mixed with crude oil and natural gas down while distillates and RBOB gasoline post gains. Metals are quietly mixed with gold trimming some of its early loss on buying tied to the lower U.S. dollar. There the U.S. dollar index has dropped about 0.20 while the DJIA is showing a small gain of 8 points. Livestock markets are mostly higher, with lean hogs mixed.

Livestock

Posted 10:30 -- The strong early gains that developed across the livestock market have quickly eroded, with live cattle and feeder cattle futures trading steady to 45 cents per cwt lower midmorning. This pullback is not expected to create widespread concern at this point. But the lack of follow through support from the morning trade is likely to draw some very limited uncertainty back into the market over the near future. This may lead to even more pressure in live cattle futures trade during the morning as the live cattle complex continues to be the driver of the market pullback Wednesday.

Posted 09:33 -- Firm gains have redeveloped across the livestock markets with cattle futures holding support of 50 cents to $1.30 per cwt within the first hour of trade. This has allowed for increased buyer activity to redevelop across the complex as traders continue to focus on firm underlying support moving through the complex. Lean hog futures have posted narrow gains in most contract months, although the focus across the market has limited buyer support during morning trade.

(BE)

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