CORN
- Dec down 5 @ 5.34
- Weekly ethanol production was at 1.096 million barrels per day last week (3rd highest weekly average rate on record)
- Mexico’s Ag Minister said they will not limit US GMO corn imports
- At current export pace, final exports might be up 350 mb from the USDA estimate, which could be supportive to corn down the road
- Funds are long about 240,000 corn contracts
- USDA reported an increase of 50.1 mb of corn export sales
SOYBEANS
- Nov down 13 @ 12.32
- Dalian palm oil, soybean oil, and rapeseed oil all making new highs
- US soybean oil supported by talk of higher demand for green fuel
- Current soybean export commitment is half of what it was at this time a year ago
- Funds are long about 50,000 soybean contracts
- USDA reported an increase of 105.8 mb of soybean export sales
WHEAT
- Dec wheat down 7 @ 7.42, Dec KC down 11 @ 7.49, Dec MNPLS down 3 @ 9.87
- Matif wheat futures are at 9 year highs
- China’s winter wheat seeding is lagging due to wet weather at 26% done vs 53% average
- Ukraine raised their wheat export number to 25 mmt (vs the USDA’s 23 mmt)
- Funds are now a little bit long Chi wheat (about 2,000 contracts)
- USDA reported an increase of 13.3 mb of wheat export sales
CATTLE
- Dec LC down 0.625 @ 129.900 & Apr FC down 0.175 @ 164.100
- The Cattle on Feed report will be released tomorrow
- Live cattle futures are now in a sideways trading range
- If cash is steady, we may remain in a sideways range for some time
- Choice cuts down 0.85 and select up 1.27
- Cattle slaughter projected at 120K
- CME Feeder Cattle Index for 10/20: down 0.07 @ 154.03
HOGS
- Feb hogs down 1.275 @ 77.950 & Feb pork cutout @ 93.175
- The chart gap has now been filled in December, February, and April
- Fundamentals for the hog market are bearish
- National Direct Afternoon report declined 0.04
- Hog slaughter projected at 478K
- CME Lean Hog Index for 10/21: down 0.74 @ 85.89
Author
Brandon Doherty