DTN Early Word Grains 02/24 05:54
Grains Stabilize Overnight
May corn was fractionally higher, May soybeans were 3 cents higher, and July Kansas City 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 3 cents higher, and July Kansas City wheat was 2 cents lower.
CME Globex Recap: Soybeans and corn were showing small gains early Friday morning, recovering a small part of Thursday's sell-off. Wheat contracts were under pressure, led by the Kansas City market. Outside commodities were mixed with energies mostly lower, metals higher, and softs mostly higher. In that latter group, cotton continues to see strong commercial buying. The U.S. dollar index and DJIA futures were both lower overnight.
OUTSIDE MARKETS: The Dow Jones Industrial Average closed 34.72 points (0.2%) higher at 20,810.32. The NASDAQ Composite lost 25.12 points (0.4%) to 5,835.51 and the S&P 500 added 0.99 point to 2,363.81 Thursday. DJIA futures were 61 points lower early Friday morning. Asian markets were mostly lower with Japan's Nikkei down 87.92 points, Hong Kong's Hang Seng lost 149.16 points (0.6%), and China's Shanghai Composite gained 2.06 points. European markets were lower Friday with London's FTSE 100 down 45.08 points (0.6%), Germany's DAX losing 103.92 points (0.9%), and France's CAC 40 off 46.96 points (1.0%). The euro posted a small gain, adding 0.0007 to 1.0590 while the U.S. dollar index dipped 0.10 to 100.88. March 30-year T-Bonds were 10/32 higher at 152'04 while April gold gained $6.10 to $1,257.50. Crude oil slipped $0.29 to $54.16 while Brent crude fell $0.33 to $56.25. Dalian soybean futures were lower while Malaysian palm oil futures were higher overnight.
DTN Midday Grain Comments 02/24 11:28
Corn, Beans Lower at Midday
Slow midday trade with wheat down around a nickel, corn down 2 and beans mixed.
By David Fiala DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures down 65 points. The interest rate products are higher. The dollar index is steady. Energies are lower with crude down 0.40. Livestock trade is mostly lower. Precious metals are higher with gold up $2.
Corn trade is 2 cents lower at midday which has us at the low of a very slow 3 cent trading range so far. Outside markets are providing limited direction, the trend of the week is down, so we may be starting to see some long liquidation here at midday. The USDA Agricultural Outlook Forum this week has provided limited meaningful news, rather confirming our comfortable supply situation is expected to remain in the year ahead. Granted weather could always change that, but the demand side of the equation remains good. This should limit downside around the low side of the trading range. Conference sessions today discussed the large and growing livestock population that will continue to keep demand for corn strong. On the May corn chart support is at the $3.69 50-day, then the $3.64 100-day. Resistance is at the $3.76 20-day, then the $3.79 10-day moving averages.
Soybean trade is mixed at midday with new crop November a penny lower and nearly March and May contracts up fractionally. Meal is near $1.70 a ton lower and soybean oil is up 22 points. Soybeans tried to rally, were up around a nickel, but have faded at midday. The weekly trend is lower with futures moving to a one-month low, but we are holding at lower support levels. The trading range has only been 7-8 cents but if we get below support this slow day could turn active this afternoon. Demand news remains good, supply news remains negative with a big South American crop coming in that may provide late-day harvest pressure. The May 200-day and lowest major moving average is at $10.20; this is viewed as key support then the $10.01 3-month low. Resistance is at the $10.43 50-day.
Wheat trade is 1 to 6 cents lower across the three markets with light spillover pressure from corn at midday. The moisture in the winter wheat areas has been welcome and noted for our lower midday trade. The weekly sales number yesterday was under a half million tons which is not getting much attention. The large domestic and world carryover stocks were a highlight of the wheat news this week along with stressed farm incomes. The May Kansas City wheat has support at the $4.61 200-day moving average and resistance at the $4.73 10-day then the $4.87 seven-month high printed one week ago.
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 02/24/17
VOLUME USDA TOTAL RANGE DTN PRACTICAL RANGE WT AVG KANSAS CONFIRMED CASH SALES - TODAY: 2,573 WEEK T0 DATE: 30,384 STEERS 1,145 125.00-125.00 125.00-125.00 125.00 HEIFERS 263 125.00-125.00 125.00-125.00 125.00
NEBRASKA CONFIRMED CASH SALES - TODAY: 91 WEEK TO DATE: 46,968 STEERS No reportable trade HEIFERS No reportable trade
TEXAS CONFIRMED CASH SALES - TODAY: 313 WEEK TO DATE: 13,082 STEERS 313 124.00-124.00 124.00-124.00 124.00 HEIFERS No reportable trade
COLORADO CONFIRMED CASH SALES - TODAY: 1,138 WEEK TO DATE: 11,672 STEERS 650 125.00-125.00 125.00-125.00 125.00 HEIFERS 488 125.00-125.00 125.00-125.00 125.00
IOWA CONFIRMED CASH SALES - TODAY: 243 WEEK TO DATE: 21,430 STEERS 18 196.00-196.00 196.00-196.00 196.00 HEIFERS No reportable trade
COMMENTS: Just a little light cleanup trade reported today.
5-AREA LV STR AVE PR&WT: $124.83(1338) HIDE&OFFAL: $11.99 Unchg CARCASS EQV INDEX CHOICE (600-900#) SELECT (600-900#) #OF AD LIVE BASED 180.08 176.36 201,495 BOX BASED 186.96 183.48 48,712 AVE INDEX 183.52 +1.64 179.92 +1.58 250,207 BEEF CUTOUTS CHOICE (600-900#) SELECT (600-900#) 198.96 +2.77 195.48 +2.65 54.89 LDS CH CUTS / 16.76 LDS SEL CUTS / 5.07 LDS TRIM / 15.29 LDS GROUND BOXED BEEF TREND: Shrply hr on mod-frly gd dem & mod offers COMPREHENSIVE WEEKLY CUTOUT VALUE: Week ending 02/17 $190.96 +0.59 CUTTER 90% 350# UP C/O: $165.20 +0.12 NAT'L BONELESS BF TRIM: 12.21 lds / Not fully established 90% TRIM: 04 lds: Wtd Avg $209.93 / Unevenly steady *ABCDE AFTER QUOTE REPRESENTS DAYS SINCE LAST REPORTED MARKET TEST*. FI KILL(WTD) FRI 106(551) WK AGO 107(543) YR AGO 102(531) MIX: THU SH91/CB23 SAT 24(575) WK AGO 29(572) YR AGO 10(541) WEEKLY CANADIAN CATTLE IMPORTS. FEEDERS SLAUGHTER S&H Week Ending: 02/11/17 1,213 3,838 Week Ending: 01/04/16 2,378 5,424 Change from prev week: -1,165 -1,586