DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

OMAHA (DTN) -- Ahead of the close March corn is up 2 cents, January soybeans up 6, Chicago March wheat is near the high and up 16, Kansas City March wheat is up 16 1/2, while Minneapolis March wheat is now 11 1/4 higher. This strength is in spite of another sharp fall in equities, with the Dow Index off 475 points, and S & P Index down 51. Crude oil remains higher -- up $1.38, but well off the daily high, on news that OPEC and non-OPEC producers have decided to cut crude output by a combined 1.2 million barrels per day in January. The U.S. dollar index is down .1490, and February gold is rallying and now up $10.

Posted 10:41 -- It's amazing what a little export business will do for markets. Wheat has been under severe pressure of late, but Friday morning, it is Kansas City and Chicago wheat leading markets higher. Currently, March corn is up 2 cents, January soybeans are up 6 cents, Chicago March wheat is up 14 1/2 cents, while Kansas City March is 15 1/4 cents higher and Minneapolis March wheat is up 9 1/2 cents. A better than expected wheat export sales number from last week at 26.2 million bushels, along with news that the U.S. captured the 50,000-metric ton (1.8 million bushels) Iraq tender, and a flash sales announcement of 224,000 metric tons (8.2 million bushels) of HRW sold to unknown, are combining to rally the wheat market. Outside markets are very mixed, with the Dow Jones again heading south, and now down 380 points, while January crude oil is up $2.20 per barrel. The U.S. dollar index is down .1040, and February gold is up $8.

Posted 08:43 -- March corn is up 2 1/4 cents, January soybeans are up 5 3/4 cents, Chicago March wheat is now 10 cents higher, with Kansas City March up 12 cents and Minneapolis wheat up 5 cents. Outside markets are still positive, with the Dow Jones Index up 31 points, January oil up $2.20 per barrel, the U.S. dollar index is down .099 and February gold is up $5.90. So far, it is a very impressive performance and risk-on in many markets.

Livestock

Posted 11:59 -- Gains have started to redevelop in all livestock trade at midday Friday as prices have shifted higher and lower through the entire morning session. Cattle futures are holding narrow gains of 10 to 40 cents per cwt, although the direction of the market is not expected to change through the end of the session. Firm gains have continued to hold through in lean hog trade due to limited direction at the end of the week.

Posted 10:41 -- Buyer support has quickly stepped back into the livestock complex midmorning Friday with lean hog trade holding light to moderate support with gains of 10 to 30 cents per cwt. This has also pulled cattle trade away from session lows with markets mixed to mostly lower, but losses contained to 5 to 20 cents per cwt. This may not spark long-term market support in the livestock complex, but it is helping to create some much-needed stability at the end of what has been a volatile week of trade.

Posted 09:34 -- Firm pressure developed in cattle trade Friday morning with initial mixed trade switching to strong losses, as February futures are trading $1.15 per cwt lower as more pressure has moved into all contract months. This has also added increased pressure to spring and summer feeder cattle futures which have posted 80 cents to $1 per cwt losses through the first hour of trade. Lean hog markets are firmly lower in most contracts as follow through selling pressure is developing following strong market losses Thursday.

(BE)