The US Agri Report

Soybean futures traded on both sides of unchanged Friday but settled at or near session lows with losses of 7 to 12.75 cents. Soymeal and Soyoil were also moderately lower. Overall, Soybean futures were lower than last week's close. The EuroZone debt situation dictated market sentiment this week, and it will do so again next week I beleive.

Corn closed slightly higher in most contracts, but near session lows for the day, but still posted slight gains on the week. Friday's high of 6.6550 for Dec Corn is initial resistance. Price action early next week will depend on whether or not traders think EuroZone leaders are moving in the right direction toward solving the region's debt issues.

Wheat futures closed mixed in Chicago, slightly lower in Kansas City and firmer in Minneapolis. On the week, Wheat futures managed slight gains on spillover from Corn. Wheat traders will continue to turn to the Corn market for price direction next week.

Cotton futures closed narrowly mixed on the day, but posted sharp losses on the week. After Cotlook reduced its 2011-12 Chinese Cotton consumption forecast by 5% this week, the Cotton market needs a shot of fresh news to spur buying interest. If supportive news is lacking, there is risk of more near-term downside risk as Bears have the short-term technical momentum.

Lean Hog futures closed slightly lower in most contracts Friday, and also posted slight losses on the week. Attention will largely be on macro-economic factors next week as investors wait to see if EU leaders finalize a rescue plan. If plan details are finalized, it could spur a fresh wave of speculative buying. But if no deal is reached, investors are likely to move away from risk.

Live Cattle futures closed steady to firmer on the day. Dec and Feb live Cattle ended the week with slight losses, while other contracts posted slight gains. Dec live Cattle are trading in line with this week's $122 cash Cattle trade. This afternoon's Cattle on Feed Report is getting a Bearish read, as it showed On Feed and Placements above expectations.

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.