GOOD MORNING!

EARLY  MORNING OPENING CALLS 

   FRIDAY, DECEMBER 14, 2007

OPENING CALLS:  Corn is called up 1-2 cents, Soybeans up 2-5 cents, and Wheat up 2-4 cents.  Cattle are called 5-10 cents lower and Hogs down 5-15 cents.

GRAINS: Grains are called higher.  The market continues to trade technically positive.  USC's computer models are positive all the grains.  If the market is in a whipsaw market, this is a sign of maturity.  Positive grain demand factors from both the Farm bill and Energy bill continue to support the market.  The trade is keenly watching both of these bills.  It is possible that both an Energy Bill and Farm Bill will be passed before next weeks holiday break.  The increased mandates will support the grains for years to come.  More acres and larger yields will be needed in all grains.  The government is taking a big gamble that yields will increase dramatically in years to come.  Water and weather will always be a limiting factor.  The U.S. dollar is very strong this morning, this is pressing the gold and silver markets.  The energy markets are also lower this morning.  Informa will be out with updated acres estimates at 10 o'clock.  In overnight trade on the Ecbot, March corn was up 2 1/4 cents, March wheat was up 8 1/2 cents, and March soybeans were up 3 1/2 cents.  Chinese soybean futures were down 11 cents, palm oil was unchanged and Paris wheat is currently up 10 cents.  Argentina's weather pattern remains dry, but showers did occur over 25% of the corn belt and 15% of the soybean belt, with 1/4-1 inch of coverage.  The temperatures were hot yesterday, ranging from 95-100 degrees.  Brazil weather remains non-threatening.  USC's computer models are positive all the grains.

HOGS:   Hogs are called slightly lower.  December hogs expire at 12 o'clock today.  Demand remains strong.  Yesterday, October exports were posted.  Exports for October are up 31% vs a year ago.  This is anew monthly record of 312 million lbs.  The supply remains large but the demand has now equalized the large supply.  The weak dollar has been the key.  The U.S. dollar this morning is very strong.  The 2 day Index is at $54.63/cwt, up 36 cents, the ECB is at $51.85/cwt, the WCB is at $54.43/cwt, and the National is at $53.49/cwt.  The premium structure of the futures market is a limiting, positive factor.  USC's computer models turned negative yesterday.

CATTLE:  Cattle are called slightly lower.  A limited clean up trade occurred yesterday at $93/cwt in Kansas.  The northern trade was at $91-$92/cwt.  The feeder cattle index is at $106.62/cwt.  Boxed beef was up 47 cents on the choice, and down 38 cents on the select.  The load count was 420 loads.  Trade is done for the week.  Deliveries Thursday were 4, all of these were re-tendered and demanded at $2/cwt at Norfolk, Nebraska.  Current weights are 794 lbs, up 8 lbs vs 2006.  Swift and National will be down on kills for the next few weeks.  Profit margins are causing the problem.  The market had a poor technical close yesterday.  USC's computer models turned negative yesterday.

ENERGIES:  Crude oil is trading lower to start the morning, down $1 early on.   After watching a 5% rise on Wednesday, we are seeing crude oil slowing move lower due to a strengthening dollar and economic concerns.  USC believes it will be range bound for the rest of 2007, but as we move closer to May, oil could shoot up over $110/barrel.  Forecasters are predicting demand growing faster that expected in 2008.  Supply is already the big concern.  Natural gas is lower.  After a 50 cent bounce off of Monday’s lows, nat gas has slipped close $7.00.  Weak cash and a milder outlook are putting pressure with the already large storage.  Support should be found between 6.80-6.60 if we break below 6.95.  Ethanol traded up 8 cents on Thursday, finishing the day at $2.05.

GOOD LUCK 

& 

GOOD TRADING!