Soybean futures closed 16.75 to 0.18 lower, which was near session lows. Meal futures closed mostly 4.60 to 4.70 lower, while Soyoil futures were 60-plus pts lower. Soybean futures faced profit-taking pressure today amid spillover from outside markets and ideas last week's gains were overdone.
Corn futures didn't stray too far from unchanged today, finishing narrowly mixed. Upside potential was limited by strength in the USD index and double-digit losses in the bean pit, as well as sharp pressure on the Dow Jones Industrial Average. Concerns about whether or not the EuroZone will come up with a timely plan to deal with its massive debt issues weighed on outside markets.
Wheat futures ended narrowly mixed in Chicago, while Kansas City wheat closed 0.04 to 0.06 higher and Minneapolis wheat was mostly 0.03 to 0.07 higher. Wheat futures were fundamentally supported by dryness concerns in the Southern Plains. Conditions are expected to be dry the next 3 wks. If that forecast pans out, it would eliminate hopes that the weather pattern is changing following heavy and relatively widespread rains a week ago.
Cotton futures closed 36 to 158 pts lower in the Dec through Dec 2012 contracts, with far-deferred contracts 3 pts higher. Negative outside markets kept a lid on buying in the cotton pit, as the USD index strengthened on ideas things were worse abroad than with the US economy.
Lean hog futures finished firmer in most contracts following a choppy day of trade. Dec lean Hog futures were supported by strength in the cash Hog market. The combination of lower cash Hog bids most of last week and late-week strength in Pork product market pushed packer margins well into the Black.
Live Cattle futures favored a firmer tone throughout the day but trimmed gains into the close and Oct. closed 0.30 lower. Feeder Cattle futures closed steady to 0.25 higher. Live Cattle started the week on solid footing, seeing follow through buying from Friday's gains. Additional support came from this week's smaller showlist and continued.
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.