DTN's Quick Takes

By DTN Analysts

Grains

OMAHA (DTN) -- May corn is up 2 3/4 cents per bushel, May soybeans are down 6 1/4 cents, May K.C. wheat is up 3/4 cent, May Chicago wheat is up 3 1/4 cents and May Minneapolis wheat is up 1 3/4 cents. The Dow Jones Industrial Average is down 365.15 points and May crude oil is down $1.32. The U.S. dollar index is up 0.310 and April gold is up $5.10 per ounce. Friday's announcement of China buying the first significant quantity of U.S. corn in years is probably not getting the reaction many hoped for. May corn is meeting some resistance at the 50-day moving average, with more solid selling likely as we approach $3.84 to $3.85. China's purchase of nearly 12 million bushels, though not large, may signal a trade deal could be around the corner. Rumors are that China is working on buying more U.S. corn.

Posted 10:40 -- May corn is up 1 3/4 cents per bushel, May soybeans are down 5 1/4 cents, May K.C. wheat is up 1/2 cent, May Chicago wheat is up 3 cents and May Minneapolis wheat is up 2 cents. The Dow Jones Industrial Average is down 322.26 points and May crude oil is down $1.33. The U.S. dollar index is up 0.380 and April gold is up $3.80 per ounce. While corn is trying to hang onto early strength following the China purchase of 300,000 metric tons (mt) of U.S. corn, soybeans are fading. Ag markets are likely being pressured by weak outside markets with crude oil now down $1.33 and the U.S. dollar index is close to the daily high.

Posted 08:42 -- May corn is up 3 cents per bushel, May soybeans are down 3 1/4 cents, May K.C. wheat is up 3 1/4 cents, May Chicago wheat is up 4 cents and May Minneapolis wheat is up 1 1/2 cents. The Dow Jones Industrial Average is down 89.57 points and May crude oil is down $0.76. The U.S. dollar index is up 0.270 and April gold is up $4.40 per ounce. Where there is smoke there is fire, and following Thursday's rampant rumors of China buying U.S. corn, Friday morning's announcement that China did indeed buy 300,000 metric tons (11.8 million bushels) of U.S. corn is a step in the right direction, albeit a small one. One would expect more to follow, but this is a good sign that a possible trade deal with China could be forthcoming soon.

Livestock

Posted 11:45 -- Mixed trade is seen in all livestock markets midday Friday. Even though cattle and hog prices have bounced back from midmorning lows, the tone of the market is uncertain. So far through the Friday session, summer lean hog futures have traded within a $6.50 to $7 per cwt trading range, due to the expanded trading limits and wild price swings in either direction. This significant shift in prices is likely to add even more volatility through the next few trading sessions, not to mention rest of the Friday session. Cattle trade has moved back to narrow gains, but the wide market shifts Friday morning seem to have reduced overall volume in the complex.

Posted 09:18 -- The unchecked buyer spree in lean hog trade may be in breaking down with prices moving from expanded trading limits in summer contracts, where July and August futures were locked in $4.50 per cwt gains. April futures is currently the only contract trading lower, but all markets are well off session highs, creating uncertainty where prices will move through the rest of the session. Sharp losses at the end of the week could add more uncertainty as traders have time to rethink and assess direction over the weekend break. Cattle trade remains sluggish with narrowly mixed trade holding in live cattle futures as nearby futures are 15 cents lower to 12 cents higher in limited trade.

Posted 09:18 -- Another run at limit gains is developing, this time with summer contracts leading the surge higher. A move above $100 per cwt in July and August futures has sparked aggressive early morning buyer interest, which continues to push prices $4 to $4.40 per cwt higher in the first hour of trade Friday. As of now, there is no indication that buyers will back off the accelerator, but things could change quickly given the market volatility and price shifts in the last couple of days. Cattle trade is mixed to mostly higher as live cattle have given back initial support in nearby contracts. April live cattle is 35 cents lower despite moderate gains holding in the cattle complex.

(ES)

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