Friday 1 June 2012

US Agriculture after the Closing Bell Report


The flight out of commodities by investors continued Thursday as Soybeans and Wheat both closed below initial support levels. New-crop corn rallied modestly as reported rain totals from Thursday continue to come in disappointing.
Wheat futures were under pressure throughout the session Thursday, and most contracts finished with losses of 0.06 to 0.14. Futures trimmed losses slightly in after hours trade. Harvest pressure continues to encourage selling in the Wheat pit, especially as dryness concerns overseas have subsided. The HRW crop has limped into the finish, however, keeping selling interest in check.
Corn futures closed mixed and remained choppy in after-hours trade. Given the fact Soybean futures ended 0.20- to 0.30 + lower in most contracts, Corn held up relatively well. Pressure on Corn to end the month was limited by concerns recent rains have not been widespread enough to erase drought conditions.
Soybean futures sold off into the close and finished mostly 0.1775 to 0.3325 lower, with nearby contracts bearing the brunt of pressure. Traders trimmed losses slightly in after hours trade. Soymeal and Soyoil also closed with moderate losses. Funds sold 8,000 Soybean contracts today, 40-M bu. Risk aversion on disappointing US economic data was the dominant attitude ahead of the calendar flip to Jun.
Lean Hog futures gapped higher on the open and buying interest mounted as the day progressed. Jun through Aug futures closed 2.125 to their 3.00 limit higher, and most deferred contracts saw $1+ gains. Traders were Bullish as they evened positions ahead of the calendar flip, largely thanks to a 1.95 rise in Pork cutout values yesterday along with strong movement.
Live Cattle futures ended about where they began, which was good for a mid-range finish. Futures closed 0.65 to 1.025 higher in the Y 2012 contracts. Cattle futures were supported in part by ideas yesterday’s losses were overdone, with fundamental support coming from the Beef market. Choice beef values were up 0.77 this morning and Select declined 0.51 on strong movement of 114 loads.
Original Article Here

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