LTN’s Closing US Agriculture Comments, Corn, Beans Drift Lower; Wheat Rallies, Lean Hog Futures Finish Higher

Corn and Soybean continued their recent slide with the latter falling through technical price support. Wheat was able to close higher for a 3rd day running.

The Hog pit scored decent progress at midweek with December through April realizing triple-digit gains. Live and feeder cattle contracts settled narrowly mixed with both buyers and sellers cautious prior to the surfacing of cash news.

Wheat futures at all 3 locations favored a firmer tone most of the day and ended mid-to high-range. Chicago and Minneapolis Wheat ended mostly 5 1/4 to 6 1/4 cents higher. Kansas City Wheat saw slightly higher gains. Futures benefited from some spread trading with Corn Wednesday as traders bet on a rise in Wheat prices.

Corn futures closed 3 1/2 to 5 1/4 cents lower in the Dec through Jul Y 2013 contracts, which was in the lower half of today’s range but off session lows. Far-deferred futures closed mostly 2 to 3 cents higher. Buying interest was limited as traders await USDA’s October crop reports Thursday morning, which caused futures to drift lower Wednesday.

Soybean futures sharply extended losses in mid-morning trade and posted a low-range close, finishing 12 to 26.75 cents lower in Nov through May contracts. Early pressure was limited by news China bought 120,000 MT of Soybean for M-Y 2012-13, as it signals prices have yet to ration use. But selling picked up as traders turned their focus to forecasts for rains in Brazil and Thursday morning’s USDA reports

Lean Hog futures extended gains into the close and finished 30 cents to 1.30 higher on signs of strong Pork demand. Sharp gains in the Pork cutout market Tuesday afternoon on strong movement led to speculation export demand had strengthened, which in turn supported futures Wednesday.

October live Cattle futures closed 22 1/2 cents higher, the most deferred contracts ended slightly lower. Expectations for steady to firmer cash Cattle prices compared with last week’s $124 trade in the Plains mildly supported Oct live Cattle futures Wednesday. Initial packer bids were established at $122, but at this stage feedlots are seeking $126 to $127 for this week’s supplies.

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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