TFM Midday Update 12-2-2020

CORN

  • Dec up 3 @ 4.18 & March up 2 @ 4.23
  • Better rain chances in very dry areas of Brazil next week causing fund liquidation
  • No change in demand, US corn still cheapest feed grain globally
  • As coronavirus escalates, ethanol drops 1.62% from last wk @ 976K barrels per day
  • Funds net sellers of 15K contracts – Preliminary O/I -550 contracts
  • March corn next support level is 50-day moving average of $4.08

SOYBEANS

  • Jan down 2 @ 11.59 & March down 2 @ 11.61
  • Soybeans on the 6th day in a row lower after failing to push through 12.00
  • Soybean meal pushing on entire complex – drop $17+ since Monday
  • Rain headed for key areas such as Mato Grosso pressuring prices
  • No change in demand, US soybeans are readily available until S. American harvest
  • Funds net sellers of 7K contracts – Preliminary O/I -4,500 contracts
  • Jan soybeans $10.90 support level

WHEAT

  • Dec Chi up 5 @ 5.75, Dec KC up 11 @ 5.49, Dec MNPLS up 7 @ 5.41
  • Recent decline in prices, makes US HRW wheat competitive with Black Sea wheat
  • Russian pegs 2021 crop at 79-82.8 mmt versus this year’s 85.3 mmt
  • With record high stocks – going to need to see dramatic production losses globally
  • Previous storm for HRW for next week, will not be as severe as predicted
  • Funds net sellers of 5K contracts SRW – Preliminary O/I -7000 contracts

CATTLE

  • Dec LC down .22 @ 110.40 & Jan FC down .70 @ 140.95
  • All eyes on cash values & beef market development toward end of the week
  • Active pressure in grain trade may give some stability to FC market
  • Friday’s slaughter est. at 121K head
  • Cash prices around 110 LC & @ 140.30 as of 11/30 for FC cash index
  • O/I: -2092 contracts for Dec LC & O/I: +1277 contracts for Jan FC

HOGS

  • Dec down .80 @ 66.17 & Dec Pork Cutout down -1.00 @ 80.70
  • Outside markets adding pressure to futures prices
  • Eroding pork values from yesterday add to bearish sentiment
  • Hog slaughter estimated at 491K
  • Cash lean index @ 66.67 as of 11/30
  • O/I: -1485 contracts

Author

Amberlee Bratcher

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