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US Agri Report: 7 October 2011

Soybean futures settled 5.50 to 0.07 lower in the November through August 2012 contracts. Soybean futures consolidated this week and posted losses for the week. Traders will continue to watch for signs a harvest low is in place. The market expects it is near as harvest activity has surged thanks to mild, dry weather in the Corn Belt.

Corn futures ended the day 0.05 to 0.07 lower, but for the week posted slight gains. Follow through buying is needed next week to signal seasonal lows have been posted. Outside markets and position squaring ahead of Wednesday's USDA Crop Production Report will likely keep price action choppy early in the week, as traders are uncertain what USDA will do with acreage in the report.

Chicago and Kansas City wheat futures settled moderately lower while December Minneapolis wheat closed a whopping 24.50 cents higher; deferred contracts showed lighter gains. For the week, Wheat futures were mostly steady to lower. The market will gauge weekend rainfall accumulation in the Southern and Central Plains for indications as to how much this will improve prospects for the winter Wheat crop given the prolonged drought.

Cotton futures continued to mark time this week by extending the recent consolidation range. Futures ended the day weaker, but posted slight gains overall for the week. Upside potential has been limited by Global economic concerns, but each time December Cotton dips below 100 cents, it has spurred fresh buying.

After a choppy day of trade, lean Hog futures firmed a bit to settle with slight gains in most contracts. Lean Hog futures were higher for the week. Traders will be watching for signs a short-term top is in the works. Thus far demand has been strong enough to chew through increasing supplies.

Live Cattle ended the day mixed, with nearby's posted slight losses for the week while June live Cattle posted slight gains for the week. October live Cattle ended the week at about a 1.00 premium to this week's cash Cattle trade, which largely occurred at 121.00. Cash Cattle trade early this week was termed moderate, with some feedlots carrying show lists over.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.