US Agriculture After the Closing Bell Report

LTN Closing Grain Comments; Renewed commercial buying in the Soy complex, Soybean and especially Soymeal, supported the other grains for much of the session, holding at bay possible pressure from outside markets.

Wheat futures were choppy with a downside bias early, but firmed on spillover support from soybeans and finished mostly 1 to 3 cents higher at all 3 exchanges. Early weakness was tied to strength in the USD index, as investors sought safe-haven investments due to ongoing concerns about the euro-zone debt crisis. But as Soybean futures firmed, Corn and Wheat followed.

Corn futures backed off session highs into the close and finished mostly 4 to 5.5 cents higher. Corn futures were supported by strength in the cash market, as Gulf basis was firmer again today. Recent strength in Gulf basis is reflective of tight supplies, an increase in demand amid Brazilian shipping delays and the fact that exporters are somewhat struggling to get Corn in exportable position.

Soybean futures staged an impressive reversal after trading double-digit lower in early trade to ultimately settle 13.25 to 18 cents higher for the day. USD strength and heightened risk aversion initially encouraged profit-taking in soybean futures, but this gave way to bargain buying amid recent reminders that Soybean demand remains strong and Soybean supplies are limited.

Lean Hog futures were mixed in early trade, but the market firmed as the day advanced to end at or near session highs with gains of 20 to 55 cents. Lean Hog futures saw some light profit-taking encouraged by dollar strength and strong gains yesterday, but this soon gave way to light bargain buying as traders expect pork demand to improve as retailers stock up for the Christmas season and for supplies to tighten early in Y 2013.

Live cattle futures closed 27.5 to 60 cents higher and near session highs. Live Cattle futures were supported fundamentally by strength in the product market. Boxed Beef prices were firmer this morning and movement was relatively active following a solid start to the week Monday.

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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