Soybean futures settled mid-range with gains of 0.0650 to 0.07 in nearby contracts. Soyoil ended slightly lower while Soymeal was firmer on spreading. A relatively uneventful news day in the eurozone allowed attention to shift to the fundamentals of the Soybean markets. Soybean futures saw some corrective Short-covering today after USDA's Supply & Demand Report showed bean ending stocks larger than expected.
Corn futures closed 0.05 to 0.0675 higher, with deferred contracts leading gains on Short-covering. Corn benefitted from spillover from Soybean and Wheat futures, nearby contracts eased from session highs as the US Dollar index strengthened late. The Dollar index rose above the October high to return above 80.000. The high for the year is 81.313, posted in January, and is Dollar Bulls' next target.
Chicago Wheat futures settled around 0.06 higher with the exception of the front month. Nearby Kansas City and Minneapolis Wheat futures closed 0.03 to 0.07 higher, while deferred months showed lighter gains. The move below the psych $6.00 mark in March Chicago Wheat attracted a wave of value buying and Short covering Monday as traders believe the downside was overdone.
Cotton futures saw a lukewarm day of trade on both sides of unchanged. In the end, March and May Cotton closed 15 to 11 pts higher, respectively, with the rest of the pit ending 1 to 43 pts lower. Despite positive export results from China this year, Cotton futures struggled to find buyers today.
Lean Hog futures traded in negative territory for most of the day, but some contracts firmed late. Lean Hog futures finished mixed with a downside bias. Market-ready Hog supplies are plentiful, but reports of some firmer cash Hog bids in Eastern locations helped Hog futures to stage a mixed finish. Cash Hog bids were also mixed today as some packers are well supplied while others still need Hogs and are keeping lines full to take advantage of wide profit margins.
Live Cattle futures opened firmer and trimmed gains. Dec Cattle closed 0.55 lower, with Feb steady. The remainder of the pit closed 0.025 to 0.65 higher. Feeder futures closed 0.75 to $1.025 higher. Live Cattle were supported by the Strong start to the week in the boxed Beef market. Choice Beef values have returned above $190-per-cwt. and movement has remained Strong.
Paul A. Ebeling, Jnr.
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.