US Agriculture After the Closing Bell Report

Wheat futures finished well off session highs, but held some impressive gains. Old-crop Chicago Wheat settled 0.0550 to 0.0775 higher with new-crop mostly 0.02 to 0.05 higher. Kansas City futures gained 0.075 to 0.11 and Minneapolis futures were up 0.05 to 0.09 on the close. Speculation about future Wheat exports out of Russia continued to provide support for the Wheat market Wednesday.

Corn futures traded in a choppy range Tuesday, but nearby contracts finished near the top of their daily trading range with gains of 0.0425 to 0.0550. New crop Corn posted fractional gains. Corn futures faced some profit taking on a firmer USD early, that shifted and ultimately, Bullish fundamentals won out into the close.

Mar Soybean finished minus 0.065 at 1213.50, 0.1275 off the high and + 0.05 from the low. Mar Soy Oil finished up 0.04 at 51.39, 0.13 off the high and 0.29 up from the low. March soybeans closed lower on the session in fairly quiet trade with a lack of market-moving news keeping trade choppy. The market pushed higher on the day shortly after the US Fed Reserve announcement which drove the USD South and Gold and other commodity markets North. Thoughts that the recent rains in Argentina and Brazil could boost crop conditions plus speculative Long liquidation selling helped to pressure the market early in the day. A bounce in Wheat and Corn helped to provide some support.

Feb Cattle closed a bit higher on the day, near the highs experiencing the highest close since 4 November. The market saw a test of the Nov contract highs basis the Apr futures overnight but traded mostly choppy to lower during Wednesday’s session before closing unchanged on the day. Thoughts that packers will be forced to pay-up in the cash market this week due to tightening supply of available feedlot Cattle helped to support the market overnight. Some concerns of increased consumer resistance if the beef market pushes much higher plus talk of the short-term overbought condition of the market helped to spark some selling. Boxed-Beef cut-out values came in at 185.17 this morning, up 0.97 from Tuesday and up from 182.53 last week at this time.

Cotton futures were under pressure for much of the day, but they did retrace a good portion of their losses to finish 46 to 126 pts lower in the Mar through Oct contracts. With the Chinese New Year celebration in full swing, Cotton futures lacked fundamental support to help them withstand the pressure of a firmer USD for much of the day on Wednesday.

Feb and Apr Hogs traded sharply higher overnight, and faded back to trade just slightly higher early in the day session today. Both markets closed Strong on the day as speculative buying is on the rise. The turn down in the USD after the Fed Committee announcement helped to support the market. Feb Hogs managed to push to the highest level since 9 December overnight but pulled back into the recent trading range into the day session. Cash Hogs traded steady to 1.00 higher at terminal locations. A set-back in loin prices late yesterday helped to pressure the Pork cut-out and this may pinch margins and spark weaker demand from the packer.

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.
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Posted by Shayne Heffernan on Jan 26th, 2012and filed underAgriculture, Consumer, Latest News, Oil, Paul Ebeling.You can follow any responses to this entry through theRSS 2.0Responses are currently closed, but you can trackback from your own site.