DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

Posted 10:36 -- Midmorning trade shows grains trading narrowly mixed, with December corn down 3 cents/bu, November soybeans down 3 cents, December Chicago wheat up 1/4 cent and December K.C. wheat up 1/2 cent. The U.S. dollar index continues to show strength, up .345, while gold and crude oil remain lower. Signs of solid new-crop demand for both corn and soybeans has failed to prevent losses as traders look ahead to the potential for record corn and soybean harvests. Paris milling wheat is trading near its lowest level in nearly three weeks, while the International Grains Council has increased their 2018-19 ending stocks estimates for global wheat, corn and soybeans from their July estimates.

Posted 08:38 -- Following Thursday's open, grains are trading lower, with September corn down 1 1/2 cents/bu, November soybeans down 9 cents, September Chicago wheat down 5 3/4 cents, September K.C. wheat down 5 cents and September spring wheat down 1 3/4 cents. Thursday's sales and shipments data was viewed as bearish for wheat, while bearish for old-crop corn, neutral for old-crop soybeans and bullish for new-crop corn and soybeans with large volumes reported. The U.S. and China have made good on their promise to hike tariffs on imports including automobiles and factory machinery, with no sign of resolution in this week's meetings. September gold is $5.90/ounce lower, while October crude oil is $.48 /barrel lower. The U.S. dollar index is .307 higher.

Livestock

OMAHA (DTN) -- Firm gains have developed in most lean hog futures with December through April contracts are holding gains of 35 cents to 85 cents per cwt higher. The pressure related to limited volume in front month October lean hog futures has added a $1.22 per cwt loss to the contract. Cattle futures are mixed to mostly lower with narrow to moderate losses seen in all live cattle trade, while feeder cattle futures are mixed. Trade in all markets remains sluggish and is likely to remain subdued through most of the session.

Posted 09:27 -- Mixed trade has continued to develop across lean hog futures with prices hovering from $1.20 lower to 95 cents higher as a combination of short covering and follow through liquidation is seen across the complex. Cattle futures are having a hard time finding any support with live cattle futures steady to 40 cents lower, although trade remains incredibly light in the first hour of trade. The feeder cattle complex is mixed to mostly lower with most contracts establishing a trading range from 20 to 50 cents per cwt lower.

(BE)