CORN

• Dec down 1-1/4 @ 397-1/4
• With shifting world fundamentals, breaks are buying opportunities
• U.S. Corn sales are running 168% ahead of a year ago
• IGC yesterday trimmed forecast for global corn by 4 mt to 1.156 billion tons
• Election concern of a Biden win could affect domestic corn demand/ethanol
• China prepares to buy millions of tons of corn to prepare for covid impacts
• Funds remain long but could see some liquidation ahead of Tuesday
• Funds net sellers of 7K contracts – O/I: +1,500 contracts
• Dec support @ 3.85 & resistance @ 4.01

SOYBEANS

• Nov up 1-1/2 @ 10.53-1/4
• U.S. soybean sales are running 145% ahead of a year ago
• IGC yesterday trimmed forecast by 3 mt to 370 million tons
• A move over 10.64 needed to turn charts back up
• Daily export sale of 121.5K mt – delivery unknown
• Brazil is importing soybeans due to rise in domestic prices to a 4-year high
• Funds are long, but with tight supplies for that to change would be unexpected
• Funds net sellers of 1K contracts – O/I: -11,200 contracts
• Jan support @ 10.37 & resistance @ 10.63

WHEAT

• Dec Chi down 6-1/4 @ 5.97-1/2, Dec KC down 4-1/2 @ 5.37-1/2 , Dec MNPLS down 4 @ 5.48-1/4
• U.S. wheat sales are running 11% ahead of a year ago
• IGC raised the forecast for world wheat production by 1 mt to 764 million tons
• Argentine rains helped temper losses to 20-21 expected wheat harvest
• Much needed rains in Russia & Plains – weather looks to turn dry next week for both
• Funds net sellers of 3K contracts SRW – O/I: -2,700 contracts SRW & + 945 contracts HRW
• CHI resistance @ 5.87 & support @ 6.10, KC resistance @ 5.32 & support @ 5.53 & MNPLS resistance @ 5.47 & support @ 5.59

CATTLE

• Dec LC up 0.15 @ 108.12 & Nov FC up 0.57 @ 136.30
• Slaughter has been active, but yesterday’s slaughter fell to 114K
• Strong short covering rally but upside looks limited due to supply
• Boxed beef price up 1.53 to 207.32 for choice cuts & up 1.65 to 191.23 for selects
• Trade still very cautious amid covid infections on the rise
• Oct Live cattle futures expire today
• Cash prices light @ 105.50-106.25 for LC & @ 134.34 as of 10/28 for FC cash index
• O/I: -3,725 contracts for Dec LC & O/I: -674 contracts for Nov FC

HOGS

• Dec up 0.65 @ 66.25
• Discount for Dec hogs against cash may be temporary but offers support
• Pork carcass increased 3.05 to 87.57 – helped by 14+ gain in hams
• Hog slaughter estimated at 492K –  even with last year
• Cash lean index @ 75.49 as of 10/28 – premium above futures but still dropping
• O/I: -1,933contracts

Author

Amberlee Bratcher