Pro Farmer's After the Close 11/4/10

By International Business Times November 04, 2010, 05:40:20 PM EDT

Soybean futures closed 37 to 39 cents higher in 2010-crop contracts, while 2011-crop contracts ended mostly 27 to 29 cents higher. Sharp weakness in the dollar triggered widespread buying in the commodity world today, which led to aggressive fund buying in the soy complex today.

Corn futures closed 9 cents higher in the March through July contracts, with far-deferred months 4 to 7 cents higher. December 2010 corn posted a new for-the-move high close, finishing at $5.90. Yesterday's announcement by the Federal Reserve it will purchase $600 billion in government debt by the end of the second quarter of next year triggered sharp selling in the dollar.

Wheat futures closed 20-plus cents higher at all three exchanges on help from positive outside markets and neighboring pits. Sharp weakness in the dollar resulted in widespread buying in the commodity markets, as the Continuous Commodity Index moved above the March 2008 high, making next resistance the all-time high of 615.04.

Cotton futures closed sharply higher. March cotton closed the 500-point daily limit higher, while the December, May and July contracts closed near limit higher. Cotton benefitted from a fresh wave of buying due to positive outside markets. Weakness in the dollar triggered widespread buying in the commodity markets. Cotton is certainly not a \"value\" buy, but the strong uptrend is still attracting technical-related interest.

Lean hog futures closed 50 cents to $1.25 higher, supported by positive outside markets and some unexpected firmness in the cash hog market. Weakness in the dollar triggered widespread buying in the commodity markets, which spilled into the hog pit. Traders may start to view hogs as a \"value buy\" after an extended downturn.

Live cattle futures were firmer throughout the day, although the December contract weakened into the close to finish 5 cents lower. The rest of the pit closed 30 to 80 cents higher. Feeder cattle futures closed 20 cents to $1 lower, pressured by strength in corn. General buying in the commodity markets helped to lift live cattle futures.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

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