CORN
- Dec corn up 3 @ 4.20 & March up 4 @ 4.23
- Daily export sales of 257K – delivery Mexico
- Argentina still dry – rains expected Thursday/Friday – then turning dry again
- Brazil’s Dec corn exports are at a 4-year low, 24% below 5-year average
- China demand alone enough to pull ending stocks lower
- Funds net sellers of 21K contracts – O/I -660 contracts
- Dec corn expires off the board Monday, Dec 14, 2020
SOYBEANS
- Jan up 8 @ 11.54 & Nov 21 up 5 @ 10.45
- Rains still in Brazil, but forecast set to turn dry again
- Exports could be revised sharply higher & drive stocks down
- Brazil’s Dec soybeans exports lowest for any month since Jan 2015
- All eyes on tomorrow’s USDA report, trimmings of 20 mb or more expected for ending stocks
- Funds net sellers of 10,000 contracts – O/I -25,000 contracts
WHEAT
- Dec Chi up 9 @ 5.72, Dec KC up 11 @ 5.48 , Dec MNPLS up 11 @ 5.54
- Oversold from a technical aspect, may see bump in prices pending USDA report
- Russia’s share of winter wheat in poor condition, at risk for large winterkill
- Strong sales may boot U.S. wheat exports as Russia exports stay high
- Funds net sellers of 6K contracts SRW – O/I -200 contracts
- Dec wheat expires off the board Monday, Dec 14, 2020
CATTLE
- Feb LC up .17 @ 110.95 & Jan FC down .35 @ 137.30
- Down trending cash market may continue with collapse in beef
- Traders focusing on the direction & activity levels of boxed beef markets & cash cattle
- Today’s slaughter est. at 121K head
- Early trade around 108 for LC & @ 138.28 (down .90) as of 12/4 for FC cash index
- O/I: -550 contracts for Feb LC & O/I: +4 contracts for Jan FC
HOGS
- February Hogs up .05 @ 65.65 & February Pork Cutout down .15 @ 75.30
- Recovery in hams might provide temporary support
- Feb’s ability to establish price support above 65.00 support key for futures
- Pork cutout futures still with lean trade volume but slowly gaining traction
- Hog slaughter estimated at 492K
- Cash lean index @ 65.60 as of 12/7 – down .19
- O/I: +216 contracts
Author
Amberlee Bratcher