CORN
- Dec down 3 @ 5.56
- US and global fertilizer prices may reduce corn acres next year
- January corn on China’s Dalian exchange is around the equivalent of $10.59 per bushel, which is the highest in 4 months
- Central US weather is mostly dry with warmer temps this weekend
- Central Brazil has rains in the 7-day forecast
- Ethanol margins are reported to be over $1 per gallon
SOYBEANS
- Nov down 10 @ 11.99
- Talk that there are mostly favorable conditions in Brazil, and they are planting at a rapid pace
- Brazil may have soybeans ready for export in January
- About 2/3 of the 68.5 mb of sales from yesterday’s export sales report were to China
- China’s reduced demand for soybeans is likely due to their internal problems (electrical / energy shortages, weather, etc)
- Tuesday’s WASDE report is expected to show a decline in US soybean exports
WHEAT
- Dec wheat unchanged @ 7.74, Dec KC unchanged @ 7.86, Dec MNPLS up 10 @ 10.27
- La Nina could cause dryness next spring and summer in parts of the US, possibly lowering wheat production
- Middle Eastern and North African countries have low wheat supplies and need to make purchases
- The wheat market is trying to find support given the possibility of lower US exports but higher Russian prices
- US wheat prices could be competitive in January
- The higher US Dollar index is pressuring wheat
CATTLE
- Dec LC up 1.000 @ 131.625 & Jan FC up 0.800 @ 158.975
- Export sales were 13% below last week
- Cash activity did not manifest as anticipated
- Live cattle charts have gaps below current levels which may need to be filled
- Choice cuts up 1.73 and select up 0.50
- Cattle slaughter projected at 120K
- CME Feeder Cattle Index for 11/4: up 0.16 @ 155.81
HOGS
- Feb hogs down 0.300 @ 79.875 & Feb pork cutout down 0.025 @ 92.900
- Gaps remain open above and below current levels on the hog charts
- There were strong export sales to China
- Upside price movement may be limited until cash stabilizes
- National Direct Afternoon report declined 0.86
- Hog slaughter projected at 475K
- CME Lean Hog Index for 11/5: down 0.38 @ 78.32
Author
Brandon Doherty