Provided by Stewart-Peterson Inc.
CORN
- Dec corn down 1 @ 6.80
- This week the market will respond to midterm elections, the monthly WASDE report, as well as weekly export data, and inflation data
- Dry conditions in Argentina are offering some support
- Argentina’s corn planting is 23% done vs 40% average
- US corn export demand is slow with Ukraine and Brazil at a discount
- A storm at the end of the week for the upper Midwest may slow remaining harvest
SOYBEANS
- Jan soybeans down 7 @ 14.55
- China announced they will have a zero-tolerance covid policy until 70% of the population is vaccinated
- Support for beans and meal may be coming from soybean oil, as capacity increases domestically for biofuel
- Long-term forecasts from NOAA suggest that the issues with low water levels in the Mississippi River could last into spring
- Palm oil continues to trend higher
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WHEAT
- Dec wheat up 10 @ 8.58, Dec KC up 15 @ 9.68, & Dec MNPLS up 14 @ 9.68
- Russia wants one of their state banks to have sanctions removed before agreeing to extend the Ukraine export deal beyond November 19
- The UN may be pushing for Russian sanctions to be lifted to increase exports, help lower global prices, and get food into counties that need it
- Last week’s initial winter wheat crop ratings were record low for this time of year
- US wheat exports continue to be slow with Russian prices still well below the US
- While Australia’s wheat crop could be close to record large, as much as 20% of the crop could be downgraded to feed
CATTLE
- Dec LC up 0.725 @ 152.375 & Nov FC unchanged @ 177.825
- Cash was higher last week and there is hope by feedlots for that trend to continue
- Market ready cattle supplies are tight, but there is concern about demand down the road
- Food and fuel inflation will likely affect how much consumers are willing to pay
- Live cattle futures have chart baps above the market
- Choice cuts down 1.43 and select down 1.16
- Cattle slaughter projected at 128K
- CME Feeder Cattle Index for 11/4: down 0.64 @ 176.99
HOGS
- Dec hogs up 2.375 @ 85.350 & Dec pork cutout up 1.975 @ 95.850
- Hogs did not have support from cash or cutouts last week
- Funds are adding to their long hog positions – the COT report showed an increase of 3,897 contracts to a total net long of 70,110
- Slaughter pace is slowing due to lower cutouts
- National Direct Afternoon report declined 0.94
- Hog slaughter projected at 487K
- CME Lean Hog Index for 11/7: down 0.89 @ 91.45