LTN's Closing Commodities Comments:
Malaysian Crude Palm Oil futures slipped to the lowest in nearly a fortnight, as traders booked profits with market focus shifting to rising stocks level in the world's 2nd largest producer.
Grain powerhouse Argentina will produce a near-record soy crop in the coming season, helping to fill supply gaps left by a US drought that has sparked fear of a world food crisis by pushing prices to new highs, a local farm chamber said.
The Wheat harvest in Britain, the European Union's 3rd largest producer, remains bogged down with heavy rains heightening quality concerns as activity winds down in the top 2 growers France and Germany.
US wheat rose, gaining for the first time in 6 sessions, on concerns Key producer Russia may curb exports of the drought-hit grain at an agricultural ministry meeting later this week.
Soybean extended gains into a second session on export demand from China and corn edged up as damage to crop yields in the US Midwest from the worst drought in more than 50 yrs continued to underpin prices.
US Wheat rose, gaining for the first time in 6 sessions, on concerns Key producer Russia may curb exports of the drought-hit grain at an agricultural ministry meeting later this week. Soybeans extended gains into a 2nd session on export demand from China and corn edged up as damage to crop yields in the US Midwest from the worst drought in more than 50 yrs continued to underpin prices
US Agriculture after the closing bell report:
The year from hell continues for grains as maturing crops decimated by the Y 2012 drought now have to worry about heavy rain and high winds from Hurricane Isaac. The entire grain complex closed sharply higher with wheat finding support from increased talk of a Russian export ban.
Wheat futures extended gains at the start of open outcry trade and then ahead of Noon CT and ended near session highs Wednesday. Nearby futures at all 3 exchanged ended around 0.30 higher. Early support came on spillover from neighboring pits, but wheat was the upside price leader at times in the grain markets as traders remain concerned about global supplies.
Corn futures surged 0.1325 to 0.2075 in the Sept through Jul contracts, while farther deferred months saw lighter gains. Futures ended high-range Wednesday. Traders shifted their attention back to the stressed Corn crop Wednesday. The generally weak condition of corn stalks this year means heavy rain and especially wind that is expected in areas of the Corn Belt could further deplete yield potential.
Soybean futures built price strength through the session, rallying into the close to finish 0.2434 to 0.3075 higher in the Sept through Mar contracts. Farther deferred futures posted slightly lesser gains. Weather played a Key role in price action in the soybean market today. Hot and dry conditions are stressing Soybean across the Corn Belt this week, raising concerns about further yield losses.
Lean Hog futures rebounded from early losses to end 0.275 to 0.625 higher and in the upper portion of today's range. Fundamentally, there was nothing new to support lean hog futures Wednesday. Support came from ideas the downside has been overdone, which triggered corrective short-covering. The hefty discount futures hold to the cash market was also supportive.
Live Cattle futures traded in a wide range today, as the market opened under pressure but then surged higher to end with gains of 0.575 to 1.75, which was high-range for all but the soon-to-expire Aug contract. A few light cash Cattle sales took place at 186 dressed in Iowa and there was unconfirmed talk of sales at 187 dressed in Nebraska. This added light support to corrective Short-covering in the live Cattle market.
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.