LTN Closing Grain Comments; Corn, Soybeans finish sharply lower, Wheat holds up

Corn and Soybean contracts were hit hard by commercial selling and spillover pressure from Bearish outside markets. Wheat held up extremely well in comparison as sell orders seemed to dry up, with the Kansas City market even able to close with fractional gains Friday.

Wheat futures saw another choppy week of trade and finished near steady to marginally higher on the week. Friday, Chicago Wheat posted slight losses, Kansas City saw slight gains and Minneapolis Wheat ended narrowly mixed. Traders will have reports to process and prepare for next week. 1st up is USDA’s Crop Progress and Condition Report. This week, traders were surprised by a low condition rating to start the year due to dryness across much of the Plains States.

Corn futures faced end-of-the-week selling to finish near week-ago levels and back near the bottom of the month-long consolidation range. Strength in the USD index weighed on the commodity sector today. Confirmation of a near-term low in the USD by follow through buying next week would open fresh Southside risk for Corn futures

Soybean futures came under heavy pressure Friday, finishing with losses in the teens to 30 + cents and on weekly lows. On the week, Soybean closed with losses that were about the same as Friday’s declines. Rains are forecast for some of the driest areas of Brazil over the next week, which could further pressure the market if they develop.

Lean Hog futures closed 12.50 to 60 cents lower in all but some of the far-deferred contracts today and lower for the week. With lean Hog futures finishing just above this week’s lows, there’s risk of heavier price pressure next week if support is violated. Fundamentally, the cash Hog market is likely to favor the Southside next week as market-ready supplies are plentiful and packers should have no problem securing needs.

Live Cattle futures posted slight losses in most contracts on the week, with December ending slightly higher. Price action was highly choppy this week, reflecting traders’ uncertainty toward demand. Boxed Beef values pulled back sharply this week, raising concerns Superstorm Sandy has disrupted beef demand along the East Coast.

 

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.

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