CBOT Grain Futures Calls:
-December corn called 1 to 3 lower.
-November soybeans called 2 to 4 lower.
-December CBOT wheat called 1 to 3 lower.
US dollar is down 8 at 75.65. December crude is down $1.12 at $78.00. Dow futures are down 44 points.
-Federal Reserve Beige Book on economic conditions will be released this afternoon
-American Petroleum Institute estimates crude oil stocks rose 3.8 million barrels.
-Morgan Stanley and Well Fargo are due to report earnings this morning.
-One economist suggests the US dollar needs to fall another 25%. Since the international community may not allow that the Federal Reserve may have to buy another $2 trillion in treasuries and housing market debt. This dollar fall would be needed to correct trade imbalances.
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-Widespread rain for the week has started. Eventually all areas will see rain sometime between this afternoon and Friday. Harvest will be restricted during this time. Next week’s forecast shows rain and possibly snow.
Grain Market Influences:
Corn summary… Futures tested key resistance last night at 390 and the rally was rejected by a round of speculative profit taking and light farmer selling. Harvest activity actually took place yesterday for the first day nationwide.
Soybean summary… Inflation traders pushed the market up last night to 1004 ¾ - this is 1 cent below a down trend line. Trader’s who saw this were selling today to take some profit on longs and there was some farmer selling in the US and S America. Basis levels in IA were -5, IL +2 to -5.
Wheat summary… Large traders seem to be buying out of short positions they have had on against long corn and beans. This is providing significant support even while cash markets remain at $1.00+ discount to futures.
Japan purchased 7,000 tonnes of feed wheat overnight. No origin country has been listed. This is separate from yesterday’s tender to buy food wheat.
Taiwan purchased 73,840 tonnes of US wheat overnight.
Ukraine reports its grain harvest at 94% complete at 43 million metric tonnes on a bunker weight basis.
One story, out last night, points to renewed interest in the Minneapolis wheat contract due to concerns about the Chicago’s viability as a true wheat price tool.
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-Wholesale beef closes up $1.19 for choice and up $.74 for select.
-Pork carcass cutout closes down $1.24.
-Cash hogs are called steady.
December Lean Hogs are called 10 to 20 higher.
----Chart support 53.10 and resistance 55.20
December Live Cattle futures called 30 to 50 higher.
----Chart support 85.00 and resistance 85.60.
November Feeder Cattle futures are called 20 to 40 higher.
----Chart support 93.50 and resistance 95.80.
Livestock Market Influences:
Lean hogs summary… This morning one newswire reporter asked us if we thought the western cornbelt packer that has been buying hogs aggressively on Tuesdays would show up again and upset the morning hog report. We told them we thought that packer may have learned their lesson and would keep a quieter profile.
Live cattle summary… There was some surprise at the Tuesday morning cash cattle trades in the southern plains. A few lots of cattle traded on a live basis at $84.50. Last week most cattle traded at $83 while the Friday afternoon late week numbers moved at $84.
CBOT Grain Futures Calls: