CORN
- December down 1 @ 3.6825, March down 1 @ 3.7750, May down 1 1/4 @ 3.8325
- Funds still long & Open Interest virtually unchanged
- No export sales reported for corn this a.m.
- More selling expected as the harvest progresses
- Dec pushed against resistance levels of 3.73 and pulled back yesterday
- Corn has retreated from overbought, next support level is 3.65 1/4
SOYBEANS
- November down 3/4 @ 10.19, January down 1 1/4 @ 10.23, March down 1 ½ @ 10.18
- Funds still long & Open Interest virtually unchanged.
- Another sale of 132k mt of soybeans to China & another of 126K mt to unknown
- Good weather should support harvest progress
- Harvest pressure could pressure prices despite China buying in the short-term
- Seasonal charts indicate a pullback in prices
- Weather in S. America creating seasonal planting delays
- Soymeal up strong due to La Nina concerns, have funds buying
WHEAT
- December CHI down 4 1/2 @ 5.5350, December KC down 2 3/4 @ 4.8925, December MPLS down 3 ½ @ 5.3650
- Funds still long SRW wheat & Open Interest virtually unchanged.
- No export sales reported this a.m.
- Weather still favorable of for U.S. spring wheat planting
- U.S. HRW areas are drying down rapidly – rain needed soon
- US dollar bullish key reversal yesterday, currently trading at 94.26
- Black Sea region & Russia still extremely dry
- Russia no longer the cheapest wheat on the market
CATTLE
- October Live Cattle up .60 @ 107.07, December up .97 @ 111.12, February up .50 @ 114.67
- October Feeders up .62 @ 141.27, November feeders up .35 @ 141.52
- Open Interest lost 1,349 positions yesterday in LC & lost 947 positions in FC
- Potential for steady to higher cash cattle trade is encouraging buying
- Cash cattle interest remains very limited
- Placements & overall cattle numbers expected higher in Friday’s Cattle on Feed Report
- Moderate pullback in corn is helping support feeders
- Cold storage has bearish tilt
- On feed supply up 3.3% from last year
- Pounds of beef in freezers up 5% from last month
HOGS
- October up .47 @ 68.80, December up .32 @ 64.37, February down .05 @ 69.02
- Open Interest increased 2,496 position yesterday
- Light trade volume this morning after yesterday’s strong move up
- Chinese supplies continue to tighten driving up their prices
- Cash hog market is strong
- Cash index hit 71.20 up 1.71 yesterday (highest level since 2019)
- Cold storage report friendly
- Frozen pork supplies were up 2% from last month
- Stocks of pork bellies were down 28% from last month
- Price direction dependent on tomorrow’s export report & quarterly Hogs & Pigs report
Author
Amberlee Bratcher