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 5 3/4 cents, November soybeans are down 15 cents and September K.C. wheat is up 7 3/4 cents. In spite of more bullish estimates from USDA on Thursday, corn continues to have difficulties finding buyers while crops and weather both look generally good. Soybeans are on track for another new nine-year low for November prices, but winter wheat contracts are holding defiantly higher after Thursday's lower crop estimates. Outside commodities are mixed.

Posted 10:32 -- September corn is down 3 cents, August soybeans are down 13 3/4 cents, September K.C. wheat is up 10 cents, Chicago September wheat is up 10 1/2 cents and Minneapolis September wheat is up 3 1/4 cents. The wheat market is leading the way as the USDA forecast of lower world wheat production is supporting the market, perhaps opening the door for an increase in U.S. exports, which have been dismal so far this crop year. Corn and soybeans continue lower as no weather threats and continued trade war tensions pressure both markets. The U.S. dollar has pulled back early gains and is unchanged.

Posted 08:36 -- After the 8:30 open, July corn is down 4 1/4 cents, August soybeans are down 13 1/2 cents, July K.C. wheat is up 3 3/4 cent and Chicago July wheat is up 3 ¾ cents. Corn opened lower as the market put aside the USDA forecast of lower ending stocks and turned its focus on the weather, which is showing little threat to the crop in the Midwest during the next seven days. Soybeans remain in a bearish mood after the USDA forecasted higher ending stocks by lowering exports. The higher U.S. dollar, up 0.21 this morning, is adding pressure as well.

Livestock

OMAHA (DTN) -- Cattle futures continue to hold moderate losses at midday, with prices 30 to 60 cents per cwt lower in live cattle and feeder cattle markets. The direction of the market is not expected to change through the end of the session. The volatility in the complex was driven by midweek activity as light trade over the last couple of days has attempted to build some stability in the market. Hog futures are showing moderate to strong support. The most aggressive support is seen in deferred contracts as traders remain focused on trader movement back into the recently oversold market complex.

Posted 10:48 -- Cattle futures have posted moderate losses through midmorning as buyer interest seems to have slowed significantly, although little widespread market change is expected to be seen before the end of the session. Strong gains have developed in deferred lean hog futures with October through May contracts trading $1.22 to $1.80 per cwt higher. This buyer activity is based on traders moving back into the complex and focusing on the ability to re-own positions at the end of the week and before prices move higher in the near future.

Posted 09:32 -- Narrow trading ranges have continued in nearby contracts through the first hour of trade. Live cattle futures are holding losses from 15 to 45 cents per cwt as traders slowly back away from strong gains seen Thursday. However, the rest of the complex is mixed with feeder cattle futures focusing on market stability and prices 7 cents lower to 5 cents higher. The overall lack of market direction early in the session is limiting overall trade volume through the entire complex. There is growing support in deferred lean hog futures trade, although at this point it is undermined if this support will hold through the end of the session.

(BE)