CORN
- Dec up 3 @ 5.66
- We have seen a rally in corn this week due to higher nitrogen prices – there may be fewer corn acres next year due to these higher input costs
- The next USDA WASDE report is on Nov 9th – they will likely raise ethanol demand – some analysts think they will raise yield 1-2 bu
- Dec corn is above 5.60 which could cause some resistance
- Corn exports are still down 16% from last year
SOYBEANS
- Nov down 3 @ 12.30
- 12.50 seems to be an area of resistance in the soybean market
- Soybean market is looking for a little bit higher yield on the Nov 9th WASDE report and a carryout close to 400 mb
- Wet US weather may slow harvest completion
- Veg oils are supporting the soybean market
- The Biden administration has proposed a $1 billion investment in biofuels over 10 years
WHEAT
- Dec wheat down 3 @ 7.70, Dec KC down 4 @ 7.86, Dec MNPLS up 8 @ 10.46
- Nov 9th WASDE report could show lower export numbers and higher carryout
- A lower Canadian crop is helping futures to trade higher
- Rains today will delay SRW wheat plantings in the eastern Midwest
- The forecast for next week is dry for both SRW and HRW areas
- The Buenos Aires Grain Exchange reported Argentina’s wheat crop at 47% good to excellent
CATTLE
- Dec LC down 1.400 @ 128.925 & Apr FC down 1.350 @ 160.650
- Today is the last trading day for Oct live cattle
- Overall outlook is for tightening cattle supply through year-end
- The expectation is for higher cash in coming weeks
- Choice cuts up 1.26 and select up 0.95
- Cattle slaughter projected at 119K
- CME Feeder Cattle Index for 10/28: down 1.07 @ 154.96
HOGS
- Feb hogs up 0.225 @ 77.425 & Feb pork cutout down 0.450 @ 90.575
- December and February have gaps in the charts above current levels, which may be filled at some point
- Yesterday we saw technical buying in the hog market
- There have been strong sales to Mexico
- Packers have been able to attain the desired supplies without much difficulty
- National Direct Afternoon report declined 0.67
- Hog slaughter projected at 479K
- CME Lean Hog Index for 10/29: down 0.97 @ 80.70
Author
Brandon Doherty