TFM Sunrise Update 10-9-19


Corn futures eased overnight, slumping 1-1/2 cents from this week’s technical strength after solid gains yesterday on fund short-covering and the insertion of weather premium. A winter storm system moving through the northwestern regions of the Midwest will delay harvest sub freezing temperatures forecast for the Dakotas, Nebraska and western Iowa and Minnesota will potentially be detrimental to the yield. December corn peaked at 396-1/2 yesterday and appears headed for $4.00 barring bearish developments in tomorrow’s WASDE report.


Bean futures are higher this morning amid overnight newswires reporting China offering to increase annual purchases of U.S. Agricultural products by $10 bil in an effort to secure an interim trade agreement. Technicals firmed again yesterday with solid gains of 5 or more cents in the Nov contract and were up another 7 cents to 9.27-1/2 last night, the highest price level since July 15. The bean market is also bracing for tomorrow’s WASDE report and a major winter storm pushing through regions of the northwestern Midwest that will likely affect overall yield and harvest.


Wheat futures were mostly steady overnight after a solid close yesterday with Dec Cbot wheat settling above $5.00 for the first time since August 9. Egypt bought wheat from Russia and Ukraine in their latest tender, but at higher prices that their last two tender. For U.S. wheat, other than the woes of the spring wheat harvest, fundamental news may be lacking. Mpls wheat is firm this morning.


Cattle futures are called mixed. The technical picture continues to look strong . . . maybe too strong which may cause buyers to shy away from a technically overbought market, at least until the development of cash trade is known. The Fed Cattle Exchange will activate at 10 AM CT. Meanwhile, news of a winter storm bearing down on the northwestern Midwest and western Plain states is supportive.


Hog futures are called steady to firmer on follow through after another erratic and volatile day yesterday. A very friendly looking reversal may prompt additional buying today, particularly with signs that Chinese demand for pork is rising. Dec hogs closed 3.15 higher while posting a bullish outside trading day and closing back above the contract’s 20 and 40-day moving averages.


Kelly Rubisch

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