DTN Early Word Grains 03/27 05:55
The End is Near
May corn was fractionally higher, May soybeans were 1 cent lower, and July Kansas City (HRW) wheat was 2 cents lower.
By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: May corn was fractionally higher, May soybeans were 1 cent lower, and July Kansas City (HRW) wheat was 2 cents lower.
CME Globex Recap: The end of the month is fast approaching with the U.S. dollar index nearing the establishment of a bearish range on its monthly chart. Yes, the greenback was on the defensive again overnight into Monday morning, though commodities in general didn't look to capitalize. Corn was showing a small gain while gold jumped almost $10. Otherwise, the sector was mixed at best.
OUTSIDE MARKETS: The Dow Jones Industrial Average closed 59.86 points (0.3%) lower at 20,596.72. The NASDAQ Composite gained 11.04 points (0.2%) to 5,828.74 and the S&P 500 dipped 1.98 points (0.1%) to 2,343.98 Friday. DJIA futures were 141 points lower early Monday morning. Asian markets were lower with Japan's Nikkei down 276.94 points (1.4%), Hong Kong's Hang Seng lost 164.57 points (0.7%), and China's Shanghai Composite fell 2.49 points (0.1%). European markets were also lower Monday with London's FTSE 100 losing 55.18 points (0.8%), Germany's DAX off 99.67 points (0.8%), and France's CAC 40 down 18.30 points (0.4%). The euro was 0.0070 higher at 1.0869 while the U.S. dollar index lost 0.73 to 99.04, a new 3-month low. June 30-year T-Bonds were 17/32 higher at 151'20 while April gold gained $8.70 to $1,257.20. Crude oil fell $0.44 to $47.53 while Brent crude lost $0.32 to $50.48. Dalian soybean and Malaysian palm oil futures were sharply lower overnight.
DTN Midday Grain Comments 03/27 11:46
Grains Trading Lower at Midday
Trade continues to drift lower at midday despite a weak dollar.
By David Fiala DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures down 100 points. The interest rate products are higher. The dollar index is 60 points lower. Energies are mixed with crude down $0.30. Livestock trade is lower. Precious metals are mixed with gold up $7.
Corn trade is 1 to 2 cents lower at midday with the light early buying giving way to light selling during the day session with a lack of fresh news and spillover pressure. Wet weather looks to hinder field work in the US, along with wetter than desired weather in Argentina causing some issues. Ethanol margins are steady to soft, and weekly export inspections remained strong at 1.556 million metric tons. Basis will likely remain steady this week as well with pre-planting movement ongoing, and some areas of isolated strength showing up. Lower prices are expected to lower planted acreage as well which is why we have a hard time being negative next week, and do expect some volatility on Friday around the two big USDA numbers: the March Planting Intentions and March Quarterly Grain Stocks report. On the May chart support is at the $3.52 late December low. Resistance is the 10-day at $3.61.
Soybean trade is 2 to 5 cents lower at midday with trade testing the lows again after some initial positive action overnight. Meal is $1 to $2 lower and oil is 10 to 20 points lower. Ideas of big soybean acreage, a rising South American crop size and chart pressure continue to limit buying enthusiasm. Harvest should continue to move along well in Brazil with Argentina seeing some near term excessive wetness. The weekly export inspections were ok seasonally at 555,012 metric tons. On the May soybean chart nearby support is hard to identify. The one-year low is at $9.37 1/4. Resistance is at the 10-day and lowest major moving average at $9.97.
Wheat trade is 2 to 8 cents lower at midday with trade continuing to see pressure from the wetter forecast promoting growth on the southern plains along with continued burdensome supply situation. The dollar is sharply lower but that has not added much support so far. Warmer weather should continue to push growth along as well with development likely already solidly ahead of normal. The weekly export inspections remained solid at 541,799 metric tons. On the May Kansas City contract support is at the low printed today at $4.21, with resistance at the 100-day at $4.45.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at email@example.com Follow Fiala on Twitter @davidfiala
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.
USDA MARKET NEWS--AFTERNOON CATTLE REPORT 03/27/17
VOLUME USDA TOTAL RANGE DTN PRACTICAL RANGE WT AVG KANSAS CONFIRMED CASH SALES - TODAY: 0 WEEK T0 DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
NEBRASKA CONFIRMED CASH SALES - TODAY: 0 WEEK TO DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
TEXAS CONFIRMED CASH SALES - TODAY: 157 WEEK TO DATE: 157 STEERS 41 130.00-130.00 130.00-130.00 130.00 HEIFERS 116 130.00-130.00 130.00-130.00 130.00
COLORADO CONFIRMED CASH SALES - TODAY: 0 WEEK TO DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
IOWA CONFIRMED CASH SALES - TODAY: 590 WEEK TO DATE: 590 STEERS 590 208.00-208.00 208.00-208.00 208.00 HEIFERS No reportable trade
COMMENTS: Just a handful of scattered trade reported today.
5-AREA LV STR AVE PR&WT: $131.27(1390) HIDE&OFFAL: $11.87 -0.10 CARCASS EQV INDEX CHOICE (600-900#) SELECT (600-900#) #OF AD LIVE BASED 195.81 186.72 76,714 BOX BASED 207.91 201.62 45,344 AVE INDEX 201.86 -0.38 194.17 -0.68 122,058 BEEF CUTOUTS CHOICE (600-900#) SELECT (600-900#) 219.91 -1.71 213.62 -1.93 42.99 LDS CH CUTS / 11.73 LDS SEL CUTS / 5.11 LDS TRIM / 15.95 LDS GROUND BOXED BEEF TREND: Lower on light-moderate demand & offerings COMPREHENSIVE WEEKLY CUTOUT VALUE: Week ending 03/24 $216.60 +4.01 CUTTER 90% 350# UP C/O: $169.90 +0.24 NAT'L BONELESS BF TRIM: 63.48 lds / unevenly stdy on lt dem & offers 90% TRIM: 33 lds: Wtd Avg $217.95 / unevenly steady *ABCDE AFTER QUOTE REPRESENTS DAYS SINCE LAST REPORTED MARKET TEST*. FI KILL(WTD) MON 116 WK AGO 116 YR AGO 98 MIX: FRI SH92/CB22 SAT SH23/CB13 WEEKLY CANADIAN CATTLE IMPORTS. FEEDERS SLAUGHTER S&H Week Ending: 03/11/17 3,419 7,142 Week Ending: 03/04/16 4,723 7,844 Change from prev week: -1,304 -702