CORN
- Dec up 3 @ 5.29
- Corn has held support over $5.00 but we need to see more export demand
- US corn export prices are currently the cheapest feed grain in the world
- Ethanol margins are still positive
- Funds sold 22,030 contracts leaving them net long 148,925 contracts
- 55% of corn is expected to be harvested on this afternoon’s crop progress report
SOYBEANS
- Nov up 4 @ 12.22
- Record highs in Malaysian palm oil overnight
- Argentina is turning dry as La Nina begins to take effect
- Mato Grosso, Brazil is reported to be 45% planted (vs a 5 year average of 25%)
- Higher crude oil is helping the soybean oil market
- 65% of soybeans are expected to be harvested on this afternoon’s Crop Progress report
WHEAT
- Dec wheat down 1 @ 7.33, Dec KC up 2 @ 7.46, Dec MNPLS down 1 @ 9.68
- MPLS wheat made a 9 year high on Friday – could help support Chi and KC
- Current EU stocks to usage estimate at 7.44% – the lowest since 2013-2014
- Funds are net long MPLS and KC wheat but net short Chi wheat
- US wheat ending stocks are the lowest in 13 years
- La Nina will likely create drier than normal conditions in 2022 across the US southern Plains
CATTLE
- Dec LC down 0.350 @ 130.625 & Apr FC down 0.925 @ 163.625
- The next Cattle on Feed report will be released on Friday
- Boxed beef prices may be near support levels
- Gains late last week may indicate further strength this week
- Choice cuts down 0.08 and select down 0.06
- Cattle slaughter projected at 120K
- CME Feeder Cattle Index for 10/15: down 0.66 @ 153.35
HOGS
- Feb hogs up 0.525 @ 81.850 & Feb pork cutout @ 92.425
- The gaps on the charts have yet to be filled completely
- Hog supplies remain substantial enough for packers to buy without bidding up
- National Direct Afternoon report declined 0.96
- Hog slaughter projected at 475K
- CME Lean Hog Index for 10/18: down 1.23 @ 87.59
Author
Brandon Doherty