CORN

• Dec up 2 @ 5.14
• US rains have caused harvest delays the past couple of days
• More rain expected for the eastern Corn Belt for the next two days
• A La Nina weather pattern is expected this year – likely to bring dryness to South America
• Funds remain net long 140,000 corn contracts
• US corn is currently the world’s cheapest
• It remains unknown how much corn China needs to buy

SOYBEANS

• Nov up 3 @ 11.98
• India cut their veg oil import tax from 2.5% to 0%
• Palm oil is lower after making a new contract high
• USDA reported yesterday that China bought 330,000 mt and unknown bought 198,000 mt of soybeans

WHEAT

• Dec wheat up 6 @ 7.25, Dec KC up 9 @ 7.31, Dec MNPLS up 13 @ 9.62
• Paris milling wheat futures are higher
• Russian wheat harvest is 95% done – 76.4 mmt harvested
• SRW wheat areas are getting rain
• HRW wheat areas should remain mostly dry for the next week
• Drought could remain a concern into 2022

CATTLE

• Oct LC up 0.500 @ 125.275 & Oct FC down 0.050 @ 157.60
• Bearish supply outlook for cattle
• Cash cattle have traded steady this week
• Boxed beef still showing weakness
• Choice cuts down 10.5 and select down 2.65
• Cattle slaughter projected at 120K
• CME Feeder Cattle Index for 10/13: up 0.11 @ 154.26

HOGS

• Oct hogs down 0.475 @ 88.175 & Oct pork cutout down 0.300 @ 105.550
• The gap on the charts below current levels has not yet been filled but it is close
• An ample supply of hogs means packers can purchase without bidding higher
• National Direct Afternoon report declined 0.93
• Hog slaughter projected at 477K
• CME Lean Hog Index for 10/14: down 1.21 @ 89.73

Author

Brandon Doherty