Price action in the grains really couldn’t gain any traction after mid-day on Monday

3-8-10

GLOBAL COMMODITY ANALYTICS & CONSULTING LLC MID-DAY GRAIN UPDATE:

GOOD DAY EVERYBODY, HERE’S YOUR CLOSING GRAIN COMMENTS FOR THIS MONDAY:

• Price action in the grains really couldn’t gain any traction after mid-day on Monday; the weaker corn market and the weaker outside markets likely took some prospective buyers out of contention, and the mid-day weather model updates didn’t change much from the morning.

• As a result, the beans stayed firm on friendly Brazilian weather as well as talk that China will continue to stockpile soy. Wheat followed on better than expected weekly export inspections and a weaker Dollar bias. Corn was the short-side of spreads all day, and it remained the weakest grain, but as the day ended, position-squaring did come in and corn closed steady. This was pretty good given that the Gold was down 1% on the day.

• The corn also had a more negative tone in Chicago, bases upon conversations I had there on Monday; the trade doesn’t seem as concerned about springtime weather as they were last week, plus the pre-estimates for Wednesday’s report suggest that the trade feels less concerned about a bullish corn number from USDA than they do a bullish bean number. We’ll see if they keep this attitude on Tuesday. Technically, Dec. Corn held a key trendline support, so that may help stimulate some short-covering before Wednesday morning’s numbers.

• On the close Monday, Corn Down Steady; Beans Up 5-6; and Wheat Up 2-3.

GOOD DAY EVERYBODY, HERE’S YOUR CLOSING LIVESTOCK COMMENTS FOR THIS MONDAY:

• The story of the day at the Merc was the cattle market, with bull-spreading, reported fund-buying, and buy-stops all pushing the lead-month fats up $1.20 on the session. April Live Cattle had a high of 94.45, and that puts it just 70 cents from its May, 2009 high for the next technical resistance going into Tuesday’s trade. Cash cattle trade in the plains was next to non-existent so I suspect funds and technical traders were the majority of the strong rally on Monday.

• Over in the hogs, trade was very calm, with a slightly lower pork cut-out price and a lack of packer interest mildly pressuring the futures market.

• On the close, Hogs Finished Down 25-35 Live Cattle Surged, Up $1.20 in the April Contract.

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The information above is not meant to be advice to buy or sell futures or options. Copyright, 2009 Global Commodity Analytics & Consulting LLC