CORN
- Dec down 9 @ 5.64
- Brazil’s first corn crop is reported to be 73% planted vs 64% last year
- Matif corn is making new highs
- Corn has seen an 80-cent rally over the last 3 weeks from October lows
- Funds may be done buying corn for the near future
- Rains in Europe have slowed corn harvest and rallied prices there
SOYBEANS
- Nov down 15 @ 12.29
- Brazil soybean plantings are reported to be 52% done vs 42% last year
- There may be Brazilian soybeans available for export in January
- There is question surrounding what will be done with extra meal if the soybean crush increases to produce more oil for biofuel
- Soybeans may be overvalued unless South America develops a weather problem
WHEAT
- Dec wheat down 10 @ 7.92, Dec KC down 8 @ 7.90, Dec MNPLS down 16 @ 10.60
- Paris milling wheat futures reached a record high yesterday (around the equivalent of $9.36 per bushel)
- All three wheat classes reached new contract highs yesterday, but ended the session lower
- This week Ethiopia, Japan, and Pakistan are tendering for wheat
- All three wheat classes could be considered overbought technically
CATTLE
- Dec LC up 2.175 @ 132.175 & Jan FC up 2.675 @ 159.700
- Feeder cattle have seen a nice recovery
- The demand for feeder cattle is good
- Packers are willing to pay more because of strong demand
- Choice cuts down 0.20 and select up 1.74
- Cattle slaughter projected at 121K
- CME Feeder Cattle Index for 11/2: down 0.30 @ 156.26
HOGS
- Feb hogs up 0.800 @ 77.950 & Feb pork cutout @ 91.000
- December and February have gaps in the charts above current levels, which may be filled at some point (though they are about $7 higher)
- Packers are still not aggressive
- Hogs continue to show weakness in cash
- National Direct Afternoon report declined 0.05
- Hog slaughter projected at 479K
- CME Lean Hog Index for 11/3: down 0.12 @ 79.04
Author
Brandon Doherty