Below is today's Opening Call Corn/Ag Report Commentary from the CME....everything in this report indirectly relates to my everyday job...aka now I actually have a valid excuse for my nerdy nighttime reading...it relates to my paycheck...yep...major GRACE MomenT! ;) What was one of your gRaCE moments of today? Corn: Ag Report
(CME Daily Market Commentary)
** OPENING GRAIN CALLS **
Corn: 5 to 7 cents higher; tight old-crop stocks, planting delays.
Wheat: 4 to 6 cents higher; weather concerns in the Plains.
Soybeans: 7 to 10 cents higher; short-covering.
Meal: $1 to $2 higher; spillover from soybeans.
Soyoil: 30 to 50 points higher; spillover from soybeans, crude oil.
Following yesterday's sharp losses, grain futures were higher on short-covering overnight amid ideas losses were overdone. But futures only recouped a portion of yesterday's losses in overnight trade. If grain futures can build on overnight gains, however, it would suggest yesterday's round of liquidation pressure has run its course. Additionally, outside markets are price-supportive this morning. The dollar is slightly weaker, while crude oil and gold futures are firmer.
Ongoing concerns about tight old-crop corn stocks and planting delays are expected to bolster corn futures this morning. Cooler temps are entering the Corn Belt, with a more active precip pattern seen into early next week. As a result, traders are becoming more fearful of a late start to the planting season in the Corn Belt.
Weather is also a worry for the hard red winter wheat crop. This week's light rains are not enough to erase the drought, maintaining crop stress.
Traders in the soybean pit are digesting news Chinese buyers are negotiating to cancel or defer delivery on 10 cargoes of South American beans. Tightening crush margins have left importers overbooked.
** OPENING LIVESTOCK CALLS **
Live cattle: Steady to firmer; yesterday's losses overdone.
Feeder cattle: Steady to firmer; spillover from live cattle.
Lean hogs: Steady to firmer; short-covering.
Livestock futures are called to open steady to firmer on ideas yesterday's losses were overdone. General commodity buying was seen in overnight trade, leading to expectations for spillover into the livestock markets this morning.
Cash sources look for packers to more actively bid for cattle today, but that doesn't mean higher cash cattle prices are expected. While boxed beef prices have stabilized on improved movement, expectations are for steady to weaker cash cattle trade after yesterday's sharp pressure on futures.
Live cattle technicals also weakened after yesterday's island-top formation in June live cattle -- suggesting a high has been posted.
Additional support in the lean hog market is expected from yesterday's sharp recovery in pork cutout values, helping to boost packers' profit margins. The cash market is expected to be mostly steady today, but some firmer undertones are possible as packers compete for tightening supplies and still need to fill late-week needs. Downside risk in April lean hogs will be limited by cash strength ahead of Thursday's expiration.
(WA Feeder Cattle Cash Prices - 4 weights sold for $175 Last Thursday @ Toppenish Livestock Commission's special Feeder Sale. Avg weight: 595# Avg Price: $162/100 wgt, 1342 steers & heifers sold)
