CORN
- Dec up 2 @ 5.33
- US expected to get a lot of rain in the coming days, delaying harvest
- Brazil forecast shows good rains over the coming weeks
- Harvest is expected to be around 50% complete this week
- China’s corn harvest expected to be record large at 273 mmt
- Funds remain net long 163,000 contracts
- USDA Oct supply and demand report released tomorrow
SOYBEANS
- Nov down 6 @ 12.37
- Rumors that China bought 5-7 cargoes of US soybeans after returning from holiday
- Palm oil down slightly after last week’s contract high
- Crude oil is over $80 per barrel in the Nov contract – may affect soybean oil
- Harvest is expected to be around 50% complete this week
- USDA Oct supply and demand report released tomorrow
- Most analysts expect an increase to carryout on tomorrow’s report
WHEAT
- Dec wheat down 2 @ 7.32, Dec KC down 2 @ 7.36, Dec MNPLS down 3 @ 9.43
- Russian wheat values have been higher for 12 weeks straight
- US wheat production is the lowest in 19 years
- USDA Oct supply and demand report released tomorrow
- Expectation for a decline in spring wheat production on tomorrow’s report due to abandoned acres
- Winter wheat conditions are favorable in Europe
CATTLE
- Oct LC up 0.050 @ 125.625 & Oct FC down 0.075 @ 159.400
- Fund’s long liquidation may have run its course
- Fundamentals are bearish on supply and may limit the upside
- Cash trade was steady to $1 higher last week
- Choice cuts down 2.03 and select down 1.70
- Cattle slaughter projected at 119K
- CME Feeder Cattle Index for 10/8: up 0.77 @ 154.57
HOGS
- Oct hogs down 0.450 @ 89.80 & Oct pork cutout down 0.850 @ 108.925
- There is a large gap on the charts below current levels
- Weakness of cash and cutouts were not supportive to the market
- Availability of hogs means packers are not very aggressive
- National Direct Afternoon report declined 0.92
- Hog slaughter projected at 475K
- CME Lean Hog Index for 10/11: down 0.64 @ 91.95