US Agriculture after the Closing Bell Comments

Grain comments: Corn lost some momentum: renewed commercial selling pressured the Corn market, wiping out a solid day. Soybean and Chicago Wheat were able to close higher with the former seeing solid double-digit gains.

Wheat futures hold slight gains in Chicago and Kansas City, Minneapolis Wheat slipped to finish steady to slightly higher. Wheat futures got a boost from concerns with production prospects in the US and Russia. The initial crop condition ratings for the US winter Wheat crop came in under year-ago and lower than traders anticipated.

Corn futures closed roughly 3 to 4 cents lower through the Jul contract, which was just above session lows. Farther deferred contracts ended mostly 2 to 4 cents higher. Corn futures were supported by strong spillover from the Soybean market for much of the session Thursday. But buying interest dried up late amid demand concerns. While supplies are light, high prices have eroded demand, reducing traders’ urgency to aggressively run up prices.

Soybean futures enjoyed gains throughout the day Thursday, but the market backed off its highs into the close. Most contracts ended mid-range with gains around 9 to 14 cents. Soybean futures benefited from ongoing talk that China is in the market for Soybeans again. Recent strong export inspections tallies and firmer Gulf basis levels for November delivery give such talk some weight.

Lean Hog futures enjoyed gains most of the session but softened after midday to end 32.5 to 47.5 cents lower in the Dec through Apr contract and narrowly mixed in deferred futures. For much of the day, lean Hog futures enjoyed gains thanks to strength in the Pork cutout market. Firmer prices boosted packer profit margins, which in turn boosted demand for market ready Hogs.

Dec Cattle closed near the lows of the day with an outside-day down after futures rallied to the highest level since 25 October The .market saw choppy to higher trade early Thursday and traded near unchanged on the session into the mid-session. The market traded as much as 72 higher into the pit opening but demand uncertainty short-term has helped to keep the trade choppy. Slow movement of Beef into the East Cost and plenty of areas without power could keep demand sluggish short-term. Traders believe there will be a rise in short-term demand from consumer restocking once the power is restored but this is still uncertain.

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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