Market News

DTN Early Word Grains         02/22 07:17
   Corn Futures Expected to Open 2 to 3 Lower as of 7:15 a.m. CST

   Corn futures are expected to open 2 to 3 lower as of 7:15 a.m. CST; soybeans
4 to 5 lower; wheat 1 to 3 lower (Chi).

By Darin Newsom
DTN Senior Analyst

General Opening Call at 7:15 a.m. CST:  Corn 2 to 3 lower, Soybeans 4 to 5
lower, Wheat 1 to 3 lower (Chi).

7:15 a.m. CME Globex:  Corn 2 1/4 lower, Soybeans 4 3/4 lower, Wheat 2 3/4
lower (Chi).

GENERAL OPENING CALL at 6 a.m. CST:   Corn 2 to 4 lower, Soybeans 6 to 8 lower,
Wheat 2 to 4 lower (Chi).

6:00 a.m. CME Globex    Corn 3 lower, Soybeans 7 1/4 lower, Wheat 3 3/4 lower
(Chi). The roll of the dice in outside commodities following Tuesday's sharp
rally was whether or not these markets would see follow-through buying or a
turnaround during the overnight session. Given the recent cycle of European
news, the latter seemed to be the best bet as the U.S. dollar index rallied and
commodities fell back. This kept grains from rallying, even if they wanted to,
with corn and wheat extending Tuesday's losses while soybeans erased their
post-holiday gains.

OUTSIDE MARKETS   The Dow Jones Industrial Average closed 15.82 points higher
Tuesday at 12,965.69. The overnight session saw the Dow Jones futures trade 5
points lower, indicating the market could see light selling interest Wednesday.
Asian markets were mostly higher with the Nikkei up 90.98 points at 9,554.00.
European markets were lower. The overnight crude oil market was $.32 lower at
$105.93 while Brent crude was $.03 lower at $121.63. The April gold contract
was $2.00 lower at $1,756.50 while the U.S. dollar index is 0.171 higher at
79.215. Soybeans at the Dalian exchange were mostly lower while the Malaysian
palm oil market was lower.

DTN Midday Grain Comments     02/22 11:53

   Grains Mixed at Midday

   Grain markets have been fairly quiet with mostly neutral outside markets. 

By David Fiala
DTN Contributing Analyst

General Comments

   U.S. stock market indices are lower with the Dow Jones Industrial Average 
down 40. Interest rate products are higher. The dollar index is 21 higher. 
Energies are weaker with crude down .30. Livestock is narrowly mixed. Precious 
metals are mostly weaker with gold steady.

   Corn

   Corn futures have traded both sides of unchanged with a higher bias on 
nearby trade this morning. At midday we have March up 3 cents and new crop 
unchanged. The March chart resistance is now at the $6.33 10-day and $6.36 
20-day moving averages; trade has flirted between these two levels today. Key 
support now is at the 50-day at $6.25 1/2. Resistance is at Friday's $6.46 3/4 
high, then the 200-day at $6.64. Further support is the low from last week at 
$6.21. Ethanol margins remain under pressure in the near term but the 
approaching spring driving season and good blender profitability should help 
margins improve over the coming weeks. Domestic Chinese corn prices remain firm 
and U.S. corn is priced at a discount even after paying freight and import 
duties. A number of Asian countries are seeking corn and feed wheat this week. 
Ukrainian corn is priced at a discount to U.S. corn, but logistically issues 
will make it hard to move.   

   Soybeans

   Soybean futures are 3 to 5 lower, meal is $1 lower and bean oil is steady to 
10 points lower at midday. The weaker outside markets and the approaching rain 
event for Brazil have put some headwinds in the bean trade for the moment. 
Argentina is coming off good rains this weekend, further stabilizing their 
crop. The March 200-day at $12.86 is the next upside threshold. November beans 
are flirting with its 200-day, at $12.64, but have not been able to sustain a 
serious challenge of it this morning. Support is at the $12.57 area on the 
10-day and 12.33 on the 20-day moving averages. There continues to be export 
interest from Asia and Europe on raw beans and products which should help find 
support until South America starts moving beans in bigger quantities. The USDA 
confirmed 250,000 metric tons of new-crop soybeans to China this morning.

   Wheat

   Wheat futures are steady to firmer at midday, with KC up 3 to 5, Chicago up 
2 to 4 and Minneapolis steady to slightly weaker. Wheat continues to struggle 
with burdensome world stocks which are continuing to limit long interest in the 
near term. However, an extended absence from the export market by Black Sea 
nations will limit downside in the near term and could promote some 
short-covering in medium term. On the March Chicago chart the 20-day moving 
average is at $6.47, which will remain resistance for the moment. A break below 
$6.30 this week was expected to be bearish on the chart and the trade has moved 
back above it today. Russia stated they had limited winter kill issues so far 
this fall and their crop will come into spring in good shape. Logistical issues 
are also starting to slow movement from Kazakhstan. While world wheat 
stockpiles will remain elevated for awhile, much of the surplus is located in 
areas where logistics make it difficult to access.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Commodity Trading Adviser. 


(ES)

Copyright 2012 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

DTN Closing Grain Comments    02/21 14:05
   Grains Open Week Mostly Lower

   Traders came out of the holiday weekend in a selling mood in corn and wheat,
while beans continued to rally, albeit slightly. What made the day more
disappointing for market bulls was the action in outside markets as the dollar
weakened while the Dow touched 13,000 points for the first time since May 2008
and crude rallied sharply.

DTN CATTLE PRICES/TRENDS               02/22 12:00

       HEAD SOLD LIVE  STEERS  DRESSED        LIVE  HEIFERS  DRESSED
KANSAS     .    *126.00(BID)   .             *126.00(BID)    .
NEBRASKA   .     .            *200.00(BID)    .             *200.00(BID)
TEXAS      .    *126.00(BID)   .             *126.00(BID)    .
COLORADO   .     .             .              .              .
IOWA       .     .             .              .              .
                         *=PRIVATE SOURCES

SEE THE DAILY DIRECT SLAUGHTER CATTLE-NEGOTIATED PURCHASES-SUMMARY BELOW

DTN COMMENTS:  Cattle buying interest is light at midday with just a few 
starter bids evident in the South at 126.00, and a few in the North at 
200.00. Asking prices are around 132-134 in the South, and 208+ in the 
North. Significant trade volume will probably be delayed until Thursday 
or Friday. 

Beef cutouts are higher at midday (Choice 196.62 +2.47, Select 192.23 
+1.08), with light box movement (56.48 lds of choice cuts, 39.27 lds of 
select cuts, 14.18 lds of trim, and 21.59 lds of ground). Cattle futures 
are mostly higher in the live pit and mixed in the feeder trade.

TERMINALS:            STEERS       HEIFERS      COWS         BULLS

DAILY DIRECT SLAUGHTER CATTLE-NEGOTIATED PURCHASES-SUMMARY
**Summary includes trade from 1:30 PM the previous day through 9:30 AM 
today.**

KANSAS   CONFIRMED CASH SALES:        0  WEEK TO DATE:       0
STEERS - LIVE FOB                     STEERS -  DRESSED DELIVERED
No reportable trade                   No reportable trade
HEIFERS - LIVE FOB                    HEIFERS - DRESSED DELIVERED
No reportable trade                   No reportable trade


NEBRASKA CONFIRMED CASH SALES:        0  WEEK TO DATE:       0
STEERS - LIVE FOB                     STEERS -  DRESSED DELIVERED
No reportable trade                   No reportable trade
HEIFERS - LIVE FOB                    HEIFERS - DRESSED DELIVERED
No reportable trade                   No reportable trade


TEXAS    CONFIRMED CASH SALES:        0  WEEK TO DATE:       0
STEERS - LIVE FOB                     STEERS -  DRESSED DELIVERED
No reportable trade                   No reportable trade
HEIFERS - LIVE FOB                    HEIFERS - DRESSED DELIVERED
No reportable trade                   No reportable trade


COLORADO CONFIRMED CASH SALES:        0  WEEK TO DATE:       0
STEERS - LIVE FOB                     STEERS -  DRESSED DELIVERED
No reportable trade                   No reportable trade
HEIFERS - LIVE FOB                    HEIFERS - DRESSED DELIVERED
No reportable trade                   No reportable trade


IOWA     CONFIRMED CASH SALES:      357  WEEK TO DATE:     635
STEERS - LIVE FOB                     STEERS -  DRESSED DELIVERED
127.00   65-80  127.00-127.00    144  No reportable trade

127.00   TOTAL  127.00-127.00    144
HEIFERS - LIVE FOB                    HEIFERS - DRESSED DELIVERED
No reportable trade                   No reportable trade

Feedlots are encouraged to call DTN with any cattle sales, at 1-800-369-
7675. All sales will be listed anonymously and organized by state.  
General trends and summaries from this data will be posted on the page 
you are now reading. 

DTN Early Word Opening Livestock       02/22 06:13
   Livestock Futures Appear Ready to Open Mixed

   Live and feeder futures should open with uneven price action as traders
jockey ahead of the likelihood of late-week cash business. Hog contracts also
seem likely to start out on a mixed basis thanks to uncertain fundamentals.

By John Harrington
DTN Livestock Analyst



Cattle: Cash Steady to $2 HR    Futures: mixed   Live Equiv $134.68 +$1.64*
Hogs:   Cash Steady to 0.50 HR  Futures: mixed   Lean $ 92.89 - 0.39**

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   The cash cattle market will probably remain in neutral at midweek with
significant trade volume probably delayed until Friday. Asking prices will be
restated on a firm basis, $132-134 in the South and $208-plus in the North.
Live and feeder contracts should open with uneven prices thanks to pre-cash
caution and anticipation linked to the February on feed report due out Friday
afternoon.

DTN Midday Livestock Comments          02/22 12:08

   Spot Feb Live Cattle Supported by Firm Cash Expectations

   Although spot Feb live cattle is pushing higher to keep pace with the cash 
feedlot trade, most live and feeder contracts are mixed near the top of the 
noon hour. Lean hog futures are mostly higher at midday, girded by short 
covering and light bull spreading.

By John Harrington
DTN Livestock Analyst



GENERAL COMMENTS: 

   Cattle buying interest this morning has been light with a few starter bids 
of $126 in the South and $200 in the North. Asking prices tower far above these 
levels near $132-$134 in the South and $208-plus in the North. Significant 
trade volume will be delayed until Thursday or Friday. According to the midday 
report, the Iowa hog base was .43 higher compared with the Prior Day settlement 
($76.00-$86.50, weighted average $86.26). The corn trade near midday is mixed, 
higher in nearbys and lower in deferreds. U.S. stocks are trading lower for the 
first day in four as investors take a more cautious stance on the European 
economic outlook. The Dow is now off 39 points with the Nasdaq down 15. 

   LIVE CATTLE: 

   Futures are mostly 7 to 65 higher. Spot Feb is well supported at midday 
thanks to ideas of at least steady/firm feedlot sales by Thursday or Friday. 
Deferreds seems a bit more cautious thanks to bull spreading and the premium 
structure of the board. Beef cut-outs at midday are sharply higher, up $1.08 
(select, $192.23) to $2.47 (choice, $196.62) with light demand (56 loads of 
choice cuts, 39 loads of select cuts, 14 loads of trimmings, 22 loads of coarse 
grinds). 

   FEEDER CATTLE: 

   Futures are mixed, up 15 to off 30. Action here is quite lackluster with 
profit-taking interest taking some of the fluff off nearby contracts. 

   LEAN HOGS: 

   Futures are mostly 25 to 75 higher. Spring and summer contracts are trading 
moderately higher as the market moves into the final hour of the session. Short 
covering and bull spreading seem to be the most supportive features. The noon 
pork trade is called moderate with light to moderate demand and offerings. 
Fresh loins, butts, 20- to 27-pound skinned hams, and lean trimmings have all 
sold on a steady basis. CME cash lean index for 02/20: 86.95, off .01 (DTN 
Projected lean index for 02/21: 87.23, up .28).

   John Harrington can be reached at john.harrington@telventdtn.com 


(SK)

Copyright 2012 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

DTN Closing Livestock Comments         02/21 16:35
   Cattle Rally Late to Close Near Session Highs

   Live and feeder cattle contracts finished mostly higher, supported by late
short covering and ongoing cash optimism. Lean hog futures settled on a mixed
basis with deferreds generally better supported than nearbys.

By John Harrington
DTN Livestock Analyst

GENERAL COMMENTS:

   According to the closing report, the Iowa hog base was .97 higher compared
with the Prior Day settlement ($76.00-$87.00, weighted average $85.89). The
cash cattle arena remained completely empty through the day with neither buyers
nor sellers showing much interest. Asking prices stayed firm at around
$132-$134 in the South and $208-plus in the North. The corn pit lost 3 to 12
cents with old-crop contracts losing ground on their new-crop counterparts.
Stocks finished narrowly mixed, pressured by steep oil prices and investors
quick to take profits following progress regarding the Greek bailout. The Dow
briefly broke through 13,000 for the first time since May 2008, but failed to
close above that key threshold. The Dow closed up 15 points with the Nasdaq off
3.

DTN Chart Technical Points             02/21 15:00
DTN FUTURES  10       2/21/12                                   SLOW STOCHASTIC
PRICES ARE DECIMAL        MOVING AVERAGES            RSI'S        5 Day  20 Day
CONTRACT    CLOSE   4-Day  9-Day 18-Day 45-Day  9Day 14Day 30Day  %K %D  %K %D
CBTWT    MAR 633.00 632.94 638.31 649.15 633.52 44.96 47.40 48.66  51  31 36 45
CBTWT    MAY 636.75 638.44 644.56 658.89 648.82 40.67 43.88 46.46  46  28 21 32
KC WT    MAR 677.00 679.88 683.69 697.74 687.38 42.27 44.87 46.74  66  42 28 34
KC WT    MAY 684.00 687.31 691.03 705.47 695.66 41.59 44.35 46.49  67  43 19 24
MN WT    MAR 816.75 816.94 820.31 826.32 824.54 44.32 45.95 46.87  52  33 38 42
MN WT    MAY 813.00 812.13 812.19 815.57 809.95 51.04 51.05 49.48  68  49 56 55
CORN     MAR 629.50 633.63 635.42 637.88 629.68 44.74 47.68 48.96  52  40 61 68
CORN     MAY 633.50 637.38 639.50 643.01 636.22 43.95 46.88 48.43  53  41 59 66
CORN     JUL 637.50 640.63 643.03 646.75 640.98 44.14 46.88 48.36  57  40 57 65
OATS     MAR 320.50 323.13 322.75 315.35 305.58 57.00 57.83 53.37  47  67 87 87
OATS     MAY 317.25 318.44 314.94 309.64 305.06 61.34 58.93 52.47  85  95 89 83
BEANS    MAR1271.001264.441250.311233.811208.31 75.05 68.00 58.77  83  83 92 89
BEANS    MAY1277.001271.131257.831242.131217.34 73.79 67.26 58.50  82  83 92 90
BEANS    JUL1285.001279.501266.721251.331226.68 73.33 67.00 58.45  84  85 93 90
S MEAL   MAR 330.20 331.58 327.73 325.26 316.32 58.90 58.71 55.78  71  80 87 85
S MEAL   MAY 332.70 334.10 330.27 327.42 318.80 59.70 59.33 56.09  75  83 90 87
B OIL    MAR  54.06  53.47  53.06  52.25  51.64 74.91 67.40 57.94  78  80 93 92
B OIL    MAY  54.45  53.85  53.45  52.66  52.04 75.09 67.51 58.05  81  84 94 93
CATTLE   FEB 128.90 127.69 126.43 125.52 123.56 73.01 68.24 60.96  92  87 92 84
CATTLE   APR 131.13 130.14 129.08 128.68 127.05 69.00 65.06 59.10  89  84 88 75
FEEDER   MAR 158.60 157.62 156.17 155.47 152.56 75.08 71.05 65.53  86  84 88 79
FEEDER   APR 160.85 159.79 158.33 157.71 154.26 76.04 72.83 67.74  94  90 93 81
HOGS     APR  89.82  89.83  89.31  88.93  88.11 56.05 54.82 51.62  83  77 78 65
HOGS     MAY  98.72  98.49  97.95  97.38  95.75 67.74 63.89 57.28  91  92 96 90
COTTON   MAR  91.25  91.91  91.78  93.30  93.33 36.41 40.40 45.19  30  42 20 17
COTTON   MAY  92.97  93.20  93.03  94.47  93.68 41.34 44.07 47.42  47  44 19 15
RICE     MAR  13.83  14.15  14.13  14.12  14.33 38.82 41.09 42.13  38  68 50 47
RICE     MAY  14.07  14.40  14.38  14.39  14.60 38.12 40.53 41.76  40  70 50 46