US Agriculture after the Closing Bell Report

Nearby Wheat futures favored a firmer tone though the day Tuesday, and finished mid-range. Chicago and Minneapolis futures ended mostly 2 to 4 cents higher, with Kansas City up 4 to 6 cents. Global crop concerns supported nearby Wheat futures, as the inability of El Nino to develop has increased concerns about crops in areas like Australia.
The Corn market saw gains much of the session, but Bears gained some traction heading into the close. Futures ended steady to 3 cents higher on the day, which was low-range for the day. The Corn market enjoyed corrective Short-covering most of the day as traders continued to ready positions for what is expected to be friendly USDA reports Thursday.

Soybean futures saw gains fade into the close. Nov Soybean ended 1 cent lower, with most other contracts ending 1 to 2 cents higher. Soymeal ended weaker, Soyoil held onto slight gains. Early gains were tied to Short-covering, but buying interest eroded as focus returned to the macro-economic picture. The USD index posted sharp daily gains after the International Monetary Fund lowered its forecast for global economic growth.

Dec Hogs closed slightly lower on the day with an inside trading session. The market traded both sides of unchanged in a tight range and mostly chopped higher after testing yesterday’s lows early. Cash markets were steady on the day and this failed to provide much leadership. Pork cut-out values late Monday were mostly unchanged as well. Talk of the overbought condition of the market and ideas that production levels are on the rise helped to limit the buying support.

Dec Cattle closed moderately higher on the session but down 50 from the early highs. Outside market forces were mixed but the stock market weakness and surge higher in the USD seemed to slow the early momentum. The market traded as much as 82 higher on the session early and pushed to the highest level since 25 Sept with a strong tone for the Beef market and talk of tightening supply ahead helping to support. Profit-taking selling emerged to spark the set-back into the mid-session and the market drifted in choppy trade late in the day.

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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