DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

OMAHA (DTN) -- As we near the close, March corn is down 3 cents, January soybeans are down 6 3/4 cents and March Chicago wheat is down 6 3/4 cents. Grains have traded lower all day with no real arguments offered. Pressuring the soy complex, central Brazil received more rain over the weekend and has more expected in this week's forecast. Even Argentina is expecting light to moderate showers this week, timely help from young crops, if it verifies. The December U.S. dollar index is quiet, trading down 0.07 and February gold has turned lower, down $1.80.

Posted 11:47 -- March corn is down 4 1/4 cents, January soybeans are down 7 1/2 cents and March Chicago wheat is down 7 cents. March K.C. wheat is down 6 1/2 cents, also trading at a new contract low with no concern from traders about Monday's red flag warnings in the southwestern U.S. Plains. In outside markets, most other commodities are also lower, except for energies. January crude oil is up 41 cents and cattle recently turned a little higher.

Posted 09:57 -- March corn is down 2 1/2 cents, January soybeans are down 3 3/4 cents and March Chicago wheat is down 5 1/2 cents. The same bearish themes are weighing on wheat prices early Monday: plentiful supplies and slow U.S. exports. January soybean meal is down $3.40 after Friday's CFTC data showed significant increases in noncommercial net longs on Dec. 5, just as prices were challenging their four-month highs. Gold and crude oil are trading a little higher.

Posted 08:35 -- March corn is down 2 1/4 cents, January soybeans are down 5 cents, and March Chicago wheat is down 3 1/4 cents. Grain prices continued to be weighed down by plentiful supplies of corn and winter wheat here in early December. This year's export pace has been slow, but at 8 a.m. CST, USDA said 4.85 million bushels (132,000 mt) of U.S. soybeans were sold to unknown destinations for 2017-18. 4.3 million bushels of U.S. corn (110,000 mt) were sold to Mexico for 2017-18.

Posted 19:10 (12/10) -- Sunday evening is off and running, with grains taking a back seat to the launch of trade of bitcoin futures on the CME’s Chicago Board Options Exchange (CBOE). The first couple of hours has seen the spot-month bitcoin contract post a 1,660 point range. Meanwhile, grains opened the overnight session lower with soybeans down 4 cents on follow-through selling from Friday, with wheat and corn down about a penny on spillover pressure. The U.S. dollar index is seeing little activity, again with all the attention on bitcoin, while gold is up a modest $0.60. DJIA futures are 16 points higher. The energy complex is mostly lower, with only natural gas posting a modest rally.

Livestock

Posted 10:52 -- Livestock futures expand early pressure as trade activity continues to develop. This has moved live cattle futures 50-to-70 cents per cwt lower in most nearby contracts as traders focus on follow through liquidation seen early Monday morning. Lean hog futures have also eroded further during the morning with traders holding losses above $1 per cwt in February futures based on concerns of fundamental pressure through the week. Buyers seem to be unwilling to venture anywhere close to the market at this point. This could limit market support over the next few days.

Posted 09:57 -- Narrow losses have held in cattle futures during the first hour of trade. The focus on increased market pressure is drawing trade activity back into the complex with losses of 2-to-20 cents per cwt holding in most cattle contracts. Lean hog futures has posted strong losses outside of front month December contracts, which are holding a narrow 15-cent gain. The rest of the complex is testing losses near $1 per cwt as traders focus on the potential impact of pork market weakness through the end of the year.

(BE)