After the Bell: Pressure on Corn and Soybeans

Posted on 11/28/2017 3:09 PM

Corn: Corn futures finished where they traded for most of the session -- down 1 3/4 to 2 1/2 cents. The lead December contract notched a new contract low today, with other months testing but respecting their contract lows. Once again, fundamental news that might lift oppressively bearish attitudes was lacking today, leaving prices to bleed lower, with the front-month hitting new contract lows.

Soybeans: Soybean futures posted losses of 2 1/4 to 3 cents through the August contract. Far-deferred futures finished fractionally to 1 1/2 cents lower. That was in the upper end of today's trading range. Soybean futures faced corrective selling throughout the day, with favorable weather in Brazil and late-week rain chances in parts of Argentina giving traders a reason to take profits out of the long side of the market.

Wheat: HRS wheat futures closed roughly 4 to 6 cents lower in most contracts. SRW contracts rebounded to close narrowly mixed, while HRW futures ended around 2 cents higher. Wheat futures were pressured by technical-based selling for much of the day, as winter wheat futures dropped to new lows. A late corrective rebound, however, pared losses and gives bulls some hope for corrective buying Wednesday.

Cotton: Cotton futures faced pressure early in today's session, but that was short-lived. The market eventually rallied and settled 7 to 190 points higher for the day, which was on or near session highs. The lead December contract, which is in delivery, led gains. Momentum remains on bulls' side in the cotton market, with USDA's long-term projections adding light support. In its outlook over the next decade, this year's 12.4 million planted cotton acres is the high-water mark.

Cattle: Live cattle futures faced pressure today, but the market was able to pare losses by the close to settle "just" 2 1/2 to 45 cents lower. Cattle futures faced light profit-taking today, with traders working to narrow futures' premium to last week's cash trade that took place at an average price near $119. The product market has been sluggish so far, raising some concerns about this week's cash prospects. But movement picked up this morning amid choppy price action. Also encouraging, packer profit margins have risen notably from week-ago levels.

Hogs: Lean hog futures backed off session highs into the close but still ended $1.07 1/2 to $1.42 1/2 higher through the April contract. Far-deferred futures posted lesser gains. Lean hog futures were supported by a combination of technical-based buying and fundamental support. The fundamental support came from strength in the cash hog market, as the national average direct cash price rose $1.47 this morning. With the cash market signaling a seasonal low may be in place, traders increased the premium nearby futures hold to the cash index.

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