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 6 1/4 cents, November soybeans are up 4 cents, and December K.C. wheat is up 11 cents. Ag commodities are trading higher with December cattle and hogs also showing healthy gains on Friday. With more rain in the forecast for soft red winter wheat areas, December Chicago wheat is showing the strongest rebound with prices up 14 1/2 cents just one day after posting its lowest close since January. The December U.S. dollar index is also helping grain prices, trading down 0.28.

Posted 10:42 -- Friday's midmorning trade shows December corn up 7 1/2 cents, November soybeans up 5 3/4 cents, December K.C. wheat up 14 cents, Chicago wheat up 17 1/2 cents and MGEX spring wheat up 8 1/4 cents. Commercial buying interest seems behind the move in wheat futures, after social media reports suggest that U.S. Chicago wheat was the lowest priced stocks offered in Friday's Egyptian tender on a FOB basis, although will struggle to compete on a delivered basis. DTN's Friday Market Weather Factors were viewed as bearish for all grains, despite more harvest delays expected in parts of the Midwest over the next seven days. Disappointing earnings in the technology sector are weighing heavily on U.S. equity trade, with the Dow down 453 points. Gold has rallied $10.20/ounce while crude oil has pared losses, up $.07/barrel. The USD has slipped into negative territory, down .125.

Posted 08:39 -- Following the 8:30 Friday open, December corn is up 2 cents, November soybeans are up 3 cents, December Chicago wheat is up 10 1/4 cents, December K.C. wheat is up 8 1/4 cents and December MGEX spring wheat is up 5 cents. Prices have rebounded from Thursday's losses, despite gains seen in the U.S. dollar index, which is up .121. Crude oil has pared overnight losses although the NYMEX December contract remains down 95 cents/barrel after OPEC statements pointing to concerns of rising inventories and uncertainty in global economies in late 2018. Headlines are suggesting the U.S. economy slowed less than expected in the third quarter, achieving an annualized growth rate of 3.5%.

Livestock

Posted 10:42 -- Strong triple-digit gains are holding in livestock trade with nearby gains in cattle and hog futures reaching $1.50 per cwt. This may add some additional late day support to the entire complex as end of the week buying is developing. Strong price support is seen in cash cattle trade with Friday morning activity increasing as prices are $3 to $6 per cwt higher than last week's levels. This could help to spark underlying activity early next week in all markets.

Posted 10:43 -- Strong underlying support is quickly moving through the livestock complex Friday morning with triple-digit gains seen in cattle and hog futures. There is growing support through the complex with early mixed trade being offset by end of week buyer activity. October and December live cattle futures are holding $1.35 and $1.10 per gains respectively focusing on the potential for firm cash market support through the end of the week.

Posted 09:26 -- Light to moderate buyer support is seen in several livestock contracts following narrowly mixed activity through the first few minutes of trade Friday. Nearby support is seen in live cattle and lean hog trade, although the lack of trade volume in all markets is keeping many traders on the sidelines through the end of the week.

(BE)