Corn futures were unchanged overnight and are up about 3 cents for the week in an uneventful week of trading. Prices are underpinned this week by less-than-ideal harvest weather and slow drying process including a winter blast of snow and cold in the Midwest that has slowed harvest activity, but the market is looking ahead at a cold but much drier outlook for the first ten days of November which will get harvest back on track.
Soybean futures are called mixed. Prices were firm overnight as yesterday’s hook reversal sends a positive signal to the market. In spite of adverse weather for harvest, the market just can’t seem to get much traction. Export sales were solid yesterday which will help provide underlying support. 943,600 tonnes for the current marketing year were reported. China purchased 480,978 tonnes of the total and there was a 351,500-tonne cancellation from an Unknown destination.
Wheat futures were flat overnight. News of consequence is lacking between yesterday and today and prices will begin with a mixed to lower bias. Dec Chicago wheat did trade down to test the 200-day moving average at 502 earlier in the day yesterday where buyers stepped in and drove the market back up. A weak dollar this week offers some outside market support.
Cattle futures are called steady to weaker after a lower session yesterday where the lower expiration of the October live cattle contract carried the Dec to a lower close on the day. This promotes some Ideas of a nearby topping signal, and the discount of cash to the futures may act as a barrier to buying interest.
Hog futures are called mixed. We don’t see a whole lot of market-driving news today. Stay with a bias that futures can work higher in the long run, but in the near term daily slaughters remain more than adequate near 490,000 and this will likely keep upward price potential in check.