DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

Posted 10:35 -- Friday's midmorning trade has December corn down 4 cents, January soybeans up 6 1/4 cents, December Chicago wheat down 5 cents, December K.C. wheat down 7 3/4 cents and December spring wheat down 1 3/4 cents. The soybean market has shaken off Thursday's bearish data release for now, with continued technical support found at the January contract's 100-day moving average at $8.7650 per bushel, while wheat traders overlook the cold weather pattern forecast over the weekend that will slow winter wheat planting and crop development. Outside markets are facing pressure on Friday following the largest wholesale inflation increase realized in six years for the month of October, with December gold down $14.70/ounce, December crude oil down $.39/barrel and stock markets trading lower. The U.S. dollar index is .224 higher.

Posted 08:38 -- Following Friday's 8:30 a.m. open, December corn is down 3 cents, January soybeans are down 1/2 cent, December Chicago wheat is down 5 1/2 cents, K.C. wheat is down 6 1/4 cents and MGEX spring wheat is down 1/2 cent. Markets continue to face pressure following Thursday's USDA's bearish global stocks estimates for 2018-19, while the stronger U.S. dollar trade is adding further pressure on grains. Despite the large upward adjustment to China's corn stocks by the USDA on Thursday, the December corn contract remains resilient and is down only 1 cent over the week's trade. Crude oil is down $1.10/barrel, reaching its lowest level in over seven months on the December chart and close to 23% below October highs, with OPEC voicing concerns of a possible supply glut in 2019. The U.S. dollar index is .121 higher.

Livestock

OMAHA (DTN) -- Trade volume has slowed significantly at midday with cattle and hog futures pulling away from early session lows. The underlying weaker tone in the complex has sparked some end of the week liquidation. Triple-digit losses are seen in cattle and hog futures, with limited price moves expected through the end of the session Friday.

Posted 10:37 -- Market pressure has continued through all livestock trade, although there continues to be limited activity in all markets midmorning Friday. Triple-digit losses have swept through cattle markets with nearby trade holding $1.50 to $2 per cwt losses. This lack of support is likely to keep most buyers from stepping back into the complex until next week. Hog futures remain moderately lower, but the lack of direction has allowed the initial pressure to ease. This could open the door for some stability at the end of the week.

Posted 09:27 -- Sharp losses continue in cattle futures with nearby live cattle and feeder cattle holding losses of $2 per cwt. The narrow to moderate gains seen Thursday seemed to have little impact on drawing buyers back to the market as traders quickly step in line to sell due to the overall pressure in the complex. Hog futures remain under pressure, although prices have quickly moved off session lows with front month December contracts cutting early losses in half with a 50-cent loss after the first hour of trade. Light trade is expected to be seen through the entire day in hog futures, although recent price weakness may spark additional activity in cattle trade.

(BE)