DTN's Quick Takes

By Todd Hultman
DTN Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- As we near the close, March corn is down 1 1/4 cents, March soybeans are up 1/2 cent, and March Chicago wheat is down 2 cents. USDA increased crop estimates on Tuesday for Argentina's corn and soybeans as well as Brazil's corn. This was another confirmation that crop conditions have been generally favorable down south and reinforces the current bearish outlook for row crops. Soybeans are holding close to steady with no big surprises revealed in USDA's numbers.

Posted 11:44 -- March corn is down 1 1/2 cents, March soybeans are down 3/4 cent, and March Chicago wheat is down 1 cent. Grains experienced a quick whipsaw after USDA's numbers were released at 11 a.m., but have settled down since and are showing a mild bearish reaction to Tuesday's numbers. USDA's U.S. ending stocks estimates of corn, soybeans, and wheat were all increased more than officially expected, but were roughly neutral for what traders were expecting.

Posted 09:44 -- March corn is down 1 cent, March soybeans are up 1/2 cent, and March Chicago wheat is down 1 1/2 cents. Early trading in grains is very light ahead of Tuesday's WASDE report with little price movement so far. The U.S. dollar index is down .56 which is mildly helpful to grain prices, but traders are more concerned about USDA's upcoming numbers. Argentina has another chance for beneficial rain later this week, more bearish news for grains.

Posted 08:39 -- After the 8:30 open, March corn is down 1 3/4 cents, March soybeans are up 1/4 cent, and March Chicago wheat is unchanged. Grains are off to a quiet start so far in front of USDA's WASDE report, due out at 11 a.m. CST. Corn is lower with an increase in U.S. ending stocks estimates of corn and wheat likely. The U.S. dollar index is down .52, giving grains a chance to trade higher while expectations for more U.S. rate increases ease.

Livestock

Posted 12:07 -- Lean hog futures remain mixed in a narrow range as firming cash hog values is able to draw light buyer support back to nearby lean hog futures. Trade volume remains sluggish, as traders continue to slowly but thoughtfully focus on fundamental market support through the first two months of 2016. Cattle futures remain mostly higher, although buyer support has faded from early highs as the inability to draw additional interest from additional traders is creating questions about just how much support will redevelop later in the week.

Posted 10:41 -- Cattle futures continue to hold moderate to strong gains following initial buyer support. Traders have backed away from initial support mid-morning with live cattle futures holding narrow gains of 10 to 20 cents in April through December contracts while feeder cattle futures are trading $1 per cwt higher. Lean hog futures are unable to move away from mixed trade, although the market is focused on securing narrow gains in nearby contracts on expectations that additional cash and pork value price support will develop through the middle of the week.

Posted 09:24 -- Cattle futures are gaining support Tuesday morning led by $2.12 per cwt gains in April through August feeder cattle contracts. This renewed interest in the market has sparked 50 to 90-cent gains in all but front month February live cattle futures, and is helping to bring additional stability to the complex. Lean hog futures remain mixed in an extremely narrow trading range once again as market consistency redevelops across the complex with traders looking for additional fundamental market support.

(KA)

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