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MarketWatch: Chinese import data support soybeans, weigh on outside financial markets.

 
Tuesday, October 13, 2015
***** Good Morning *****
   
# Soybeans trade another nickel higher during most of the overnight session as futures work to hurdle technical resistance from the 50-day moving average and the September high.
# Soybeans are finding fundamental support overnight from Chinese trade data.  The preliminary number for September soybean imports is 7.26 million tons, which is down from the prior month but well above trade expectations.  
# While November soybean futures are trying to clear their 50-day moving average, December corn is trying to maintain support from that mark.  In the five sessions centered around report day, futures have made a full 50 percent retracement of the September rally.  
# Traders are thinking last week's favorable weather will have allowed farmers to reach 40 percent progress on the corn harvest and 60 percent on soybeans.  Crop Progress numbers will be reported after the closing bell.            
# Strong export demand and falling production data helped boost Malaysian palm oil prices on Monday.  Some spillover support was being enjoyed by soy oil futures overnight.          
# It has been a tale of two regions for Brazil at the start of soybean planting season.  The west-central region, region which includes top-soybean planting state Mato Grosso, has suffered dry conditions while the southern portion of the country has been burdened with heavy rains in recent weeks.   
# Harvest will continue at a good pace in the Midwest with clear skies expected through the week.  Chances for frost develop late in the weekend.  
# The Chinese soybean import number was strong but the total trade number was not.  All imports were down 20 percent on the month.  Global equity markets fell on the news and the weakness weighs on U.S. equity index futures overnight.      

***** Hog futures look to open steady/higher; cattle futures poised to continue higher.  ***** 

# Cattle futures are staging a rebound after cash markets show signs of bottoming.  Technical indicators have suggested the board to be oversold, so a correction to the upside is not unexpected. 
# Wholesale pork prices remain strong, despite their facing better competition from beef.  Cash prices are sustaining recent gains and support the nearby hog futures contract as it approaches expiration on Wednesday.  
 

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