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 up 5 cents, November soybeans are up 27 1/2 cents, and September Chicago wheat is up 11 1/4 cents. News of the day is that China is sending a team of trade officials to the U.S. later this month in hopes of breaking the current stalemate of trade talks. December soybean meal is also trading up $5.80 on the news and October lean hogs are up their daily 3-cent limit. Corn and wheat are also benefiting from Thursday's news, even though the seven-day forecast is favorable for crops in the central U.S.

Posted 10:42 -- September corn is up 3 1/2 cents, November soybeans are up 22 1/4 cents, September K.C. wheat is up 10 cents and Chicago September wheat is up 9 1/2 cents. Markets are still excited about the news that China and the U.S. are willing to talk about the trade issues this month. Winter wheat markets are also happy to see some fresh export business announced this morning by the USDA. Front month crude oil is up 43 cents per barrel, recovering a little from Wednesdays steep losses with renewed concern over global oil demand amid the currency crisis in Turkey. The U.S. dollar remains lower, down 0.2460.

Posted 08:35 -- After the open, September corn is up 4 cents, November soybeans are up 18 cents, September K.C. wheat is up 14 1/4 cents and Chicago September wheat is up 13 cents. The news of the day for soybeans came from the Chinese Ministry of Commerce saying in a statement released on Thursday night that at the invitation of the U.S., China will send a delegation to the U.S. in late August for trade talks. This news excited the markets in the overnight and has spilled into this morning. Before the open, USDA announced fresh soybean export sales of 154,404 metric tons of soybeans for delivery to Mexico during the 2018-19 marketing year. In addition, they announced export sales of 200,000 metric tons of hard red winter wheat for delivery to Iraq during the 2018-19 marketing year. The U.S. dollar has turned lower, down 0.179.

Livestock

Posted 12:02 -- Cattle futures have remained sluggish Thursday morning with prices mixed within a narrow range. The cattle complex seems to be the only market that has totally overlooked the widespread support seen following an announcement that trade talks with China were announced. Hog futures are holding limit gains in nearby contracts, while grain markets have posted moderate to strong buyer support through the day. The stock market has also jumped onto the buying bandwagon with the Dow Jones Index currently 400 points higher for the day.

Posted 11:20 -- Narrow gains have redeveloped in most cattle futures with prices 10 to 40 cents per cwt higher in most contract months. Lean hog futures have expanded early gains to hit daily trading limits of $3 per cwt. The underlying focus of renewed trade talks with China has created widespread market support in the hog complex.

Posted 09:27 -- Sharp triple-digit gains have flooded into lean hog futures trade Thursday morning surrounding widespread buyer support in most commodity markets. The announcement that trade talks between U.S. and China are rekindling has put some additional interest lean hog futures, which have been hurt by tariffs and additional concerns of further trade weakness with the country. December futures are leading the complex higher with a $2.50 per cwt rally in the first hour of trade. If widespread buyer support continues, it is possible that the lean hog market could move to daily trading limits of $3 per cwt before the end of the session. Cattle markets are less optimistic with initial nearby support developing in live cattle and feeder cattle trade. But the development of pressure in deferred contracts has sparked some additional uncertainty through the market and left the complex mixed to mostly lower during early activity.

(BE)