Ahead of the Open: Grains Firmer, Beans Softer Overnight

Posted on 11/29/2017 8:07 AM

Crop calls

Corn: Fractionally to 1 cent higher
Soybeans: 1 to 3 cents lower
Wheat: 1 to 3 cents higher

Following yesterday's losses, corn and wheat futures benefited from light short-covering in overnight trade. But bears remain clearly in control of both markets after winter wheat posted fresh contract lows yesterday and corn is just above its lows. Meanwhile, soybeans faced light profit-taking on forecasts for improved weather -- at least temporarily -- in Argentina.

Also this morning, USDA announced China purchased 263,000 MT of 2017-crop soybeans and an unknown destination purchased 101,600 MT of 2017-crop corn.


Livestock calls

Cattle: Slightly higher
Hogs: Higher

Cattle futures are expected to enjoy a slightly firmer tone amid higher cash hopes. But buying will be limited as traders are cautious about higher cash trade after Choice beef values softened 94 cents yesterday, although movement was strong at 169 loads. The midmorning online cattle auction could set the cash tone for the week. Ongoing weakness in the corn market is supportive for feeder futures.

Hog futures are called higher on a combination of followthrough buying after yesterday's surge as well as improved packer demand. Packers are preparing for a large Saturday kill to make up for down time around Thanksgiving and are encouraged by improvement in pork movement. Yesterday pork prices firmed 54 cents on 379.53 loads.

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