Provided by Stewart-Peterson Inc.
CORN
- Dec corn up 2 @ 6.94
- Corn is trading quietly higher after slipping lower this morning as Putin claims that the Black Sea grain deal is back on
- While the UN says that Ukrainian exports are still moving and being inspected, Ukraine reports that 218 vessels are blocked and 101 waiting for inspection to leave Ukraine
- US corn inspections are down 23% from last year as South American corn is still cheaper
- Corn remains in its sideways trading range with 7 dollars as very strong resistance
SOYBEANS
- Nov soybeans up 22 @ 14.29
- Soybeans have broken out of their range higher as strong domestic demand as a result of record high crush margins supports prices
- The USDA reported that 94.6 mb of soybeans were inspected for export last week, and impressive number given the issues on the Mississippi
- 440 contracts were delivered yesterday, but demand has not been an issue as processors are hungry for cash beans in the wake of record crush margins
- Based on January futures, the value of crushed soybeans exceeds the cost of beans by 3.85 a bushel
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WHEAT
- Dec wheat up 2 @ 8.55, Dec KC down 9 @ 9.70, & Dec MNPLS down 10 @ 9.72
- Wheat is lower following confusing news out of the Black Sea region, which has traders wondering whether Ukrainian exports will be allowed to continue
- Yesterday, Russia said they were suspending the deal, but today it appears as though it is back on, but that Russia may stop Ukrainian ships for inspection
- In the US, 87% of winter wheat is planted, but only 62% is emerged which is down from the 5-year average of 66% for this time of year
- Only 28% of the crop is rated good-to-excellent, which is tied with 2002 for the worst rating at this time of year
CATTLE
- Dec LC down 0.375 @ 152.100 & Nov FC down 0.475 @ 177.150
- Front month live cattle are lower with deferred contracts higher, while feeders are lower with slightly higher corn
- Higher cash trade is still expected this week but not necessarily with the same strength as last week, leaving traders unsure as grain prices hold steadily higher
- Slaughter pace is brisk leaving packers needing to replenish supplies
- Choice cuts up 0.39 and select down 0.03
- Cattle slaughter projected at 128K
- CME Feeder Cattle Index for 10/31: up 1.63 @ 177.48
HOGS
- Dec hogs up 0.350 @ 85.250 & Dec pork cutout unchanged @ 96.700
- Hogs are trading higher despite lower cash and a drop in the cutout of 1.40
- Dec hogs remain at a 4-dollar discount to cash and have room to run higher especially if cash jumps today as expected
- The cutout has been unable to find support with such brisk slaughter pace
- National Direct Afternoon report declined 2.20
- Hog slaughter projected at 491K
- CME Lean Hog Index for 11/1: up 0.02 @ 93.79