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PRO FARMER'S AHEAD OF THE OPEN FOR 11/20/09

** OPENING GRAIN CALLS **
 Corn: 2 to 4 cents lower: dollar firmer.
 Wheat: 4 to 6 cents lower; dollar firmer.
 Soybeans: 2 to 3 cents lower; outside markets, profit-taking.
 Meal: Mixed; spreading expected.
 Soyoil: 20 to 40 points lower; crude oil weaker.
 
Grain futures are called to open lower on followthrough from overnight losses and negative outside markets. The dollar is firmer this morning and crude oil is sharply lower. Crude oil is testing the bottom of the recent choppy trading range. As a result, buying in the commodity markets is expected to be light this morning. Soybeans are also expected to face profit-taking following yesterday's sharp gains. But given the positive technical outlook and continued strong domestic and export demand, downside risk in the bean pit should be
limited to profit-taking. Traders could also view the weaker open as a buying opportunity, but focus is expected to be on evening positions ahead of the weekend.
USDA announced a daily corn export sale of 734,000 MT to Mexico, with 458,750 MT of the total for the current marketing year and the rest for the upcoming season. The sale is improvement from the recent lackluster export pace and could help to limit pressure in corn futures.Wheat traders are waiting on results from the Egyptian wheat tender, but
are holding out little hope the U.S. will get any of the business.
   
** OPENING LIVESTOCK CALLS **
 Live cattle: Mixed; spreading, position squaring.
 Feeder cattle: Mixed; spreading.
 Lean hogs: Steady to firmer; cash called mixed.
 
  Buying will be muted in the livestock markets unless outside markets turnaround. The U.S. stock market is expected to be softer this morning, which will limit outside investment into the commodity markets. But hogs are expected to find short-covering following yesterday's losses. Price action in the cattle pit is expected to be muted as traders even positions ahead of this afternoon's Cattle on Feed Report. The report is expected to show a rise in feedlot numbers compared to year-ago, with the pace of Placements also expected to be higher than year-ago. As a result of increasing numbers, upside potential will be limited. Cash cattle trade is complete for the week, with trade coming in between $83 and $84, which is down $1 to $2 from last week. However, feedlots are not current, as packers didn't want all the cattle. This lowers cash expectations for next week unless the beef market improves. The cash hog market is expected to be mostly steady this morning, but some mixed bids are expected amid varied demand. A few locations are upping their Saturday kill requirements due to profitable margins and cash sources expect packers to raise daily kill requirements next week to make up for the Thanksgiving holiday shortfall.
 

The daily commentaries provide a recap of each product's traded price activity, an analysis of the factors that influenced price activity, a recap of any reports released that day, and a look ahead at the next day's schedule. CME Group provides market commentaries for corn, wheat, soybeans, gold, silver, FX, equity indexes and regional market updates.

The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.