CORN
- Dec corn up 6 @ 5.73
- Market is trying to rebound from losses yesterday
- NOAA 30 day US forecast calls for warmer and drier conditions
- Ethanol margins continue to be strong
- Ukraine and Argentina prices are cheaper than the US, which is affecting our export demand
- January corn on China’s Dalian exchange is around the equivalent of $10.55 per bushel
SOYBEANS
- January soybeans up 8 @ 12.25
- Concern that the Dec 9th USDA report may lower export numbers and raise carryout
- Brazil soybeans are a little bit cheaper for export to China (vs the US) from now until February
- Argentina and southern Brazil could get some dryness as La Nina kicks in
- Recovery in crude is helping veg oil markets
WHEAT
- Dec wheat up 6 @ 7.80, Dec KC down 8 @ 8.11, Dec MNPLS up 2 @ 10.22
- Matif and Black Sea futures didn’t show as much weakness as US futures – Europe has declining stocks due to a large increase in exports
- Forecast for the US southern plains remains dry for HRW wheat
- Eastern Australian wheat regions are expected to get more rains this coming weekend
- Ethiopia is tendering for 14.7 mb of wheat
CATTLE
- Dec cattle up 1.000 @ 136.875 & Jan FC up 0.500 @ 165.350
- Yesterday we saw long liquidation – cattle on the recovery today
- It could be argued that the market was overbought and already due for a correction
- Demand should remain strong despite virus news
- Choice cuts down 5.90 and select down 1.73
- Cattle slaughter projected at 122K
- CME Feeder Cattle Index for 11/30: up 1.17 @ 162.46
HOGS
- Dec hogs up 0.350 @ 72.725 & Dec pork cutouts down 0.525 @ 87.850
- Reports of an African Swine Fever outbreak in Vietnam
- There have been ample supplies of hogs to the market
- National Direct Afternoon report gained 1.45
- Hog slaughter projected at 483K
- CME Lean Hog Index for 12/1: down 0.56 @ 70.04