Corn, Palm Oil, Soy, Wheat Prices and Trading

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October 3, 2012 5:36 PM EST

LiveTradingNews

US Agriculture after the Closing Bell Report

Wheat futures saw pressure throughout the day on Tuesday, but move off their lows into the close. Losses ranged from 10.5 to 14.75 cents in nearby contracts. Spillover from Soybeans along with investor risk aversion encouraged more selling pressure in the Wheat market Tuesday. Plus, Monday’s Crop Progress Report confirmed that recent rain has advanced winter Wheat planting in the Southern Plains.

Corn futures saw pressure for much of Tuesday, but rebounded late to finish mixed. Given a lack of Bullish news, Corn futures were pressured by heavy spillover from the Soybean and Wheat markets and macro-economic uncertainty. But with harvest surging past the halfway point and given the tight supply situation, selling interest proved to be light.

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Soybean futures faced stepped-up liquidation pressure, with the Nov through Aug contracts posting double-digit losses. Nearby futures ended 27 to 29.75 cents lower. Soymeal and Soyoil saw sharp spillover pressure. Monday’s crop progress report showed 41% of the nation’s Soybean crop was harvested as of Sunday, which signals that hedge-related pressure will likely continue this week.

LTN International Commodity Comments: Malaysian Palm Oil futures slid further to their lowest in more than 2 yrs, as rising stocks and the record pace of the US Soybean harvest pointed to a growing global supply of vegetable oils.

Brazilian Corn exports set a record in September and Ethanol shipments reached their highest level since July 2009, the Trade Ministry said on Monday, after the worst US drought in 80 yrs tightened world supplies.

Ukrainian wheat exports have reached 2.6-M tons so far this season or 65% of the maximum volume agreed by the traders and government, Ukrainian Agrarian Confederation grain lobby said Tuesday.

Lean Hog futures rallied into the close to finish 85 cents to $1.725 higher through the April contract. Deferred futures ended 30 to 75 cents higher, which was still a high-range close. Lean Hog futures benefited from follow through buying, with traders comfortable adding premium into nearby contracts as the Pork cutout market continues to strengthen.

Live Cattle futures closed 25 to 55 cents higher, which was roughly a mid-range close for most contracts. Monday’s strong close triggered follow through buying on the open this morning as traders covered Short positions after the recent price pullback. With the turn of the calendar, there has also been a fresh influx of money into the Long side of the market.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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