Corn: 7 to 9 cents lower; spillover from widespread commodity pressure.
Wheat: 10 to 12 cents lower; profit-taking, dollar strength
Soybeans: 10 to 12 cents lower; downside could be limited by daily sales.
Meal: $3 to $4 lower; spillover from soybeans.
Soyoil: 30 to 50 points lower; spillover from soybeans, crude oil.
Grain futures faced profit-taking pressure overnight, with negative
outside markets contributing to price weakness. The dollar index is
enjoying short-covering support this morning after trading mixed
overnight, while crude oil and gold futures are sharply lower.
USDA announced a flurry of export sales this morning that could help to limit pressure on that market, or even spur fresh buying given the
magnitude of the sales announcements. Export sales of 2,740,000 metric
tons (MT) of soybeans for delivery to China during the 2010-2011 marketing year follows last week's visit by the Chinese trade delegation. Additionally, USDA announced export sales of 110,000 MT of soybeans for delivery to China during the 2011-2012 marketing year and sales of 114,000 MT of soybeans for delivery to Taiwan during the 2010-2011 marketing year.
Wheat futures faced profit-taking overnight following yesterday's strong gains, but downside risk should be limited by global crop woes, as well as ongoing dryness in the U.S. hard red winter wheat Belt.
** OPENING LIVESTOCK CALLS **
Live cattle: Steady to lower; followthrough pressure.
Feeder cattle: Steady to lower; spillover from live cattle.
Lean hogs: Mixed; spreading, cash to provide little direction.
Live cattle futures are expected to build on yesterday's negative price performance. Traders will also be reacting this morning to news of light cash sales in Kansas and Texas yesterday at $105, which is down $1 from the bulk of last week's sales. Cash sources say this sale may set the precedent for the week, as feedlots take advantage of still-strong prices. Following yesterday's negative reaction to the Cattle on Feed Report, feedlot managers moving cattle late yesterday were concerned further price deterioration in futures could push the cash market even lower as the week progresses.
Meanwhile, the cash hog market is expected to be mostly steady this
morning and cash sources don't expect very much in terms of price movement the remainder of the week, as available supplies and demand appear to be in balance. Still, lean hog futures are vulnerable to spillover from live cattle futures, although they were able to move off early lows yesterday.
Livestock futures are also vulnerable to spillover from widespread
selling in the commodity markets this morning.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.