CORN

Analysts say the corn looks like it is due for a short covering bounce, but the market has been quiet so far today. 　The export sales report is delayed until tomorrow, so we are lacking fresh news so far. 　Basis levels are still strong around the country and around the world, so there is still hope that exports will improve in the near future. 　Other than that, traders will be keeping an eye on the stock market watching for further weakness that may cause selling pressure in all markets.

WHEAT

The wheat failed to hold gains yesterday, and today looks like it will be another day of consolidation type trade. 　The market is considered oversold and due for a bounce, but it hasn't happened yet and we don't have any fresh news to get it started. 　As usual, the bulls just need to see a couple of good export sales to get the market moving, because the poor start to the growing season already has traders edgy. 　The December KW should work up to the $9.00 - $9.05, say analysts but it has been a slow start today.

SOYBEANS

There was good demand news for the soybeans yesterday with a large sale of beans to China and a large sale of soybean oil to unknown destinations. 　Additionally, the NOPA crush numbers were better than expected. 　All in all, the demand outlook is still quite good and analysts think that USDA may be underestimating both crush and exports, which fits with the idea that we will use all the beans that we produce this year. 　Analysts look for short covering in the next few days.

LIVE CATTLE

Live Cattle futures closed moderately lower in the front months and down significantly in the deferred. 　December remains in the middle of it's two week trading range, with no cash activity taking place. 　Friday's on feed report is expected to show total on feed below 95%, with placements of 87% and marketing totals up 2 1/2%. 　The numbers should prove friendly, say analysts to the first quarter of 2013. 　Overnight trade was narrowly mixed under light volume, with December modestly higher and deferred modestly lower.. Bids remain a good $5 below asking prices.

FEEDER CATTLE

Key levels of support were broken on Thursday with Feeder Cattle futures posting triple digit losses in the January contract. 　Open interest in the Feeders rose over 500 contracts, suggesting new hedgers entering the market. 　Overnight activity was off another 25-40 cents, with corn prices trading near unchanged. 　The report should be friendly according to analysts, but cash index levels are definitely on a slow downward spiral.

CRUDE OIL

January crude oil prices were grinding higher during the initial morning hours, supported by rising tensions in the Middle East and potential supply disruption concerns. However, some of the upside in the crude oil market seems tempered by evidence of slowing economic growth in Europe, as well as uncertainty surrounding the US fiscal cliff. Israeli air force strikes on Hamas heighten geopolitical tensions in the region and have engaged comments from Egypt. These unfolding events will likely trigger greater headline flow that could keep the crude oil market supported in the near term. Expectations for this morning's EIA inventory report are for a build in the range of 2.0 million barrels last week.

There is substantial risk of loss to futures and options trading. Past performance is not indicative of future results.

By Donna Hughes
Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchange’s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the AllAgNews.com Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.

Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. O’Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.