DTN's Quick Takes

Periodic Updates on the Grains, Livestock Futures Markets

Illustration by Nick Scalise

Grains

OMAHA (DTN) -- March corn is up 1 1/2 cents, March soybeans are up 3 cents, Chicago March wheat is 7 1/4 cents higher, Kansas City March is 7 cents higher and Minneapolis March wheat is 5 cents higher. The Dow Jones average is down 80 points in two-sided trade, while February crude oil is down $1.12 per barrel. The U.S. dollar index is up .0420 and February gold is up $1.60. Wheat is threatening to forge a reversal on ideas that U.S. wheat could garner some extra export business, as we are the cheapest in the world on a FOB basis. Corn and beans are just mildly higher and trying to remain firm after Thursday’s meltdown, and the trade’s impatience with no concrete evidence of the rumored new demand.

Posted 10:37 -- March corn is up 1 3/4 cents, March soybeans are 4 cents higher, Chicago March wheat is 8 3/4 cents higher, Kansas City March is up 8 cents and Minneapolis March wheat is 6 1/2 cents higher. Wheat is strong based on U.S. cash wheat offers being the world's lowest priced FOB value and rumors of North African buying interest. The Dow Jones average is down 117 points, while February crude oil is down 95 cents, taking a breather from its recent $10 rally from the lows. The U.S. dollar index is up .0850 and February gold is up $2.40. Corn and beans are struggling to make up for losses on Thursday, fueled by a higher than expected Brazil soy forecast and weaker cash markets, suggesting that China has backed off on their buying interest.

Posted 08:40 -- After the open Friday, March corn is up 1 1/4 cents per bushel, March beans are 1 cent higher, Chicago March wheat is 8 1/4 cents higher, Kansas City March is 8 1/4 cents higher and Minneapolis March wheat is 7 cents per bushel higher. The Dow Jones average is down 117 points, February crude oil is down 82 cents, the U.S. dollar index is up .0290 and February gold is now .8 higher.

Livestock

Posted 11:34 -- Firm gains continue in live cattle futures trade with prices 40 to 60 cents per cwt higher. The steady support through the morning Friday has broken through short-term resistance levels, moving prices to new contract highs in spot month contracts. Lean hog futures remain under pressure with nearby contracts posting triple-digit losses. February futures are trading $1.12 per cwt lower midday Friday with traders adjusting markets lower following early week gains.

Posted 10:37 -- Strong follow through pressure is developing through the lean hog complex. Increased volume is adding to the overall market pressure with front month futures $1.50 per cwt lower midmorning Friday. Firm gains have continued to develop with prices 30 to 60 cents per cwt higher. The shift has moved front month futures to new contract highs, allowing additional but limited buyer activity to move back into the complex.

Posted 09:24 -- Firm gains continue in live cattle and feeder cattle futures, although prices have backed away from early highs. There is growing uncertainty as to just how much additional buyer activity may develop through the end of the session, although the underlying tone of the market is firming. Hog futures have pulled back through the morning Friday with most contracts posting triple-digit losses from $1 to $1.50 per cwt lower as traders adjust positions at the end of the week. Even with the strong morning losses, spot month February contracts would still hold a weekly gain of $0.77 per cwt.

(BE)