Mid-Day Ag. Report

** MIDDAY GRAIN TRADE **

Beans and corn remain firm while wheat has also turned mostly higher.

Technical short-covering continues to provide support in the bean pit at midday. Support is also coming from the firm tone in meal. However, bulls are having a tough time extending gains with rains in the South American forecasts. Unless March beans can clear resistance at $4.37 and find new buyers, futures risk trending back toward yesterday's lows.

The early bout of selling in wheat failed to produce much followthrough, and futures have recovered as a result. But to keep futures moving higher, funds must show up as buyers. That will likely take a definitive move through resistance at $2.98 in March Chicago futures.

Spillover and short-covering continue to support corn futures at midday. But unless beans extend their move or technical buying is found, this firm tone will struggle to extend into the close.

** MIDDAY LIVESTOCK TRADE **

Live and feeder cattle futures are maintaining early gains, as hopes for higher cash cattle trade linger. Lean hog futures have turned solidly higher across the board and are trading near session highs.

Growing talk of blizzard-like conditions hitting the Midwest by early next week have shifted hog traders' attention to the buy side. Support is also coming on short-covering action. But to keep gains building, more technical buying is needed. If added buy stops are not found above resistance at $59.30 in April hogs, futures will be at risk of fading on late-session profit-taking.

Some light cash cattle sales have been recorded at steady to $1.00 higher values, but nothing widespread. Still, traders hope a firm cash tone will develop in Texas and Kansas, and that's limiting sellers.

Beef prices, however, turned soft this morning which may remove some of feedlots' negotiating edge. That could cap futures upside potential.
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**End of Day Market Report**

** GRAIN TRADE **

Corn: Corn futures pulled support from strength in the bean pit and late buying in wheat. A lack of supportive news and limited trader participation kept gains from extending.

Soybeans: Bean futures rallied to solid gains despite overnight rains in southern Brazil and forecasts calling for more showers. The rains were lighter than expected. Also, there was talk China could buy beans ahead of March 20.

Wheat: Wheat futures were led higher by the Kansas City market on forecasts calling for bitter cold temps in the Plains early next week. Chicago futures found late support on short-covering.

** LIVESTOCK TRADE **

Cattle: Live cattle futures were initially spurred on by expectations for higher cash cattle prices in the Plains. Forecasts calling for a drastic change in temps in the Plains early next week also added support.

Hogs: Lean hog futures scored strong gains today despite a steady to weak cash hog market. Support came from the weather, as forecasts now call for a potential winter storm in the upper Midwest early next week.



This message was edited Thursday, Jan 24th 4:38 PM