Provided by Stewart-Peterson Inc.
CORN
- Dec corn up 2 @ 6.88
- Corn has been stuck in a trading range as the market awaits news regarding the Ukraine export deal
- Two storm fronts coming this weekend could start to bring showers into the Midwest
- There is the potential for the railroads to go on strike in November
- Brazil is offering FOB corn 15% cheaper than US offers for export
- Brazil October corn exports are estimated at 6.5 mmt (3x the level from last year)
SOYBEANS
- Nov soybeans up 13 @ 13.95
- The Fed continues to talk about raising interest rates until inflation is at 2%
- Argentina has finally gotten some rains and Brazil is mostly favorable (though central areas are dry)
- If soybean oil closes higher today, it would be the 7th higher close in 8 days
- Wuhan, China is said to be on lockdown after the finding of new covid cases
- The soybean crush value is reported at $3.77 per bushel above the cost of soybeans
- Soybean planting in Brazil is reported to be 34% complete
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WHEAT
- Dec wheat up 10 @ 8.45, Dec KC up 10 @ 9.44, & Dec MNPLS unchanged @ 9.52
- ADM CEO believes Russia will extend the Ukraine export deal
- Recent rains in Oklahoma, Texas, and parts of Kansas have pressured the wheat market
- Despite recent rains, many HRW areas are still in extreme drought
- USDA’s FAS reduced their estimate of Argentina’s wheat crop to 15.5 mmt (a 2 mmt decline from the last USDA estimate)
CATTLE
- Dec LC up 0.125 @ 153.425 & Nov FC up 0.450 @ 178.375
- Cash expected to trade higher this week
- Packers need to fill demand, so slaughter pace is brisk
- Food inflation may impact demand for beef down the road
- Demand is strong and boxed beef prices gained yesterday
- Choice cuts up 3.51 and select up 1.74
- Cattle slaughter projected at 128K
- CME Feeder Cattle Index for 10/25: up 1.23 @ 174.85
HOGS
- Dec hogs up 0.425 @ 88.875 & Dec pork cutout up 0.075 @ 97.600
- After struggling yesterday, hogs managed a higher close
- Lower cutouts were not supportive
- Hog futures have become overbought and may be due for a correction
- Pork production is expected to increase in the coming months
- National Direct Afternoon report increased 7.59
- Hog slaughter projected at 490K
- CME Lean Hog Index for 10/26: up 0.14 @ 94.81