After the Bell: Technical Buying Lifts Corn

Posted on 11/29/2017 3:07 PM

Corn: Corn futures finished high-range with gains of 2 3/4 to 3 3/4 cents through the July contract. Traders covered short positions in the corn market today. While there was a daily corn export sale announced this morning and the dollar was weaker, the buying was largely technically driven. With funds heavily short corn and tomorrow being the last trading day of the month, followthrough short-covering is possible.

Soybeans: Soybean futures enjoyed gains for most of today's session, but the market softened late, resulting in a steady to 1-cent lower close. Light short-covering lifted the bean market for much of the day as traders readied positions for month's end and noted a daily soybean sale to China. The country bought 263,000 MT of U.S. beans for 2017-18.

Wheat: Winter wheat futures settled high-range and up 3 to 5 3/4 cents in most contracts. Spring wheat futures settled narrowly mixed, with nearby contracts mildly favoring the upside. Spread trading lifted the winter wheat markets and led to choppy trade in HRS wheat futures today. Traders also mildly covered short positions in winter wheat futures. But abundant global supplies and near daily reminders of export competition from the Black Sea region continue to limit fresh buying in the market.

Cotton: Cotton futures surged into the close to finish high-range with gains of 104 to 147 points through the July contract. A squeeze play in December cotton futures ahead of the Dec. 6 contract expiration continued today. With some shorts seemingly still needing to exit the market, additional near-term price strength is possible. Strength in the December contract is helping fuel gains in deferred futures.

Cattle: Live cattle futures finished high-range with gains of 57 1/2 to 92 1/2 cents through the June contract. Traders extended the premium December live cattle futures hold in relation to last week's cash cattle trade, suggesting they sense higher cash prices are likely this week. They got no direction from the Fed Cattle Exchange online auction this morning, however, as no sales were reported. Unless higher cash cattle trade develops this afternoon, cattle futures could face light profit-taking tomorrow despite the high-range close.

Hogs: Lean hog futures poked to a new high for the move early in the session, but that gave way to some profit-taking and a mixed finish. December through May futures closed 10 to 67 1/2 cents lower, while far-deferred months ended 5 to 22 1/2 cents higher. Lean hog futures are maintaining the market's uptrending pattern. Traders have been encouraged by recent gains in cash hog prices on a national basis, though these have yet to translate to an uptick in the lean hog index.

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