* Grain and oilseed prices got a lift from the broader commodity indices this morning as those baskets of commodities gapped higher once again on the charts. That pushed grain and oilseed prices into areas seen as selling targets by both producers and speculators, leading to prices pulling back from their early highs.
* Additional weakness came when expectations for a bullish energy inventory report fell flat, yielding an increase in crude oil stocks that sent the energy sector well off its early session highs. Crude oil is a leading indicator for the broader commodity sector, leading the indices to erase early gains, and in some cases close chart gaps. The major commodity indices have erased early gains and remain under modest pressure as crude oil pulls back from 10-week highs. That added to pressure in the grain and oilseed pits but they continue to show some underlying support, particularly for soybeans, which ironically are expected to see a yield increase Friday.
* The Department of Energy reports that crude oil stocks
* Ethanol stocks
* Corn futures are 4 cents lower this morning after the December corn contract uncovered selling interest at $3.9975 this morning. The contract is now testing support in the $3.94 area, a level that was previously seen as an area of resistance.
* November soybeans are still a penny higher amid the selling pressure. The contract probed above trend line resistance that has held the market since this summer earlier today, but has not collapsed even though it fell back below that resistance. The trade expects a slight upward tweak in the yield Friday, but better than a 600K acre drop in harvested area.
* Wheat prices are 10 cents lower in Chicago, 8 cents lower in KC and 5 cents lower in MN. Kansas City continues to gain on Chicago, even as traders take profits on the recent price rise.
* Live cattle futures tripped preset buy stops this morning when they gapped higher in follow-through trading. October cattle are locked the $4.50 expanded limit higher, while December is trading $3.30 higher. Choice cuts finished the day Tuesday 20 cents higher; their first positive gains since September 9.
* Feeder cattle are $2.25 to $3.65 higher on strength in the fats, but with a bit less enthusiasm as the cash market remains soft.
* Lean hog futures are mixed to 50 cents weaker in profit taking. December lean hogs are mildly lower after profit taking kicked in this morning just below last week’s high of $67.60 per cwt.
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