CORN

Corn futures were choppy overnight, holding on to last week’s firmer close.  After pushing to a new nearby high last Monday, corn futures fell into a consolidation pattern for the rest of the week and Dec traded slightly lower on the week for the first time in a month.  The contract is at 3.59-1/2 this morning.  Despite a declining yield potential, the corn market will likely have ample supplies, keeping pressure on prices.  The market is looking for fresh news, and that may come from the demand side of the balance sheet later this week when USDA announces the results of the September Monthly Supply/Demand report on Friday, Sept 11.  For today, USDA Weekly Export Inspections and Crop Ratings will be released.  In other markets, the dollar is up sharply and crude is sharply lower making new multi-month lows.  This is providing some headwinds for the corn market.

SOYBEANS

Soybean futures were firm overnight featuring new highs for the move.  Nov beans rallied as much as 9 cents to 9.77 before easing.  Closing near session highs on Friday spurred follow-through momentum following the 3-day holiday weekend.  Soybean meal prices finished higher and breached those highs last night, bringing support to the complex before turning lower this morning.  Cold temperatures are forecast for tonight and tomorrow in eastern Dakotas, Minnesota and northwestern IA where lows are expected to reach the upper 30s and 40s.  Most freezes and frost will occur in northern and western Minnesota and eastern Dakotas with very few temps below 30.  Crop quality issues will be possible and some damage is expected, but no serious production cut will result.  Export demand remained strong with robust sales of soybeans and soybean meal on Friday.

WHEAT

Wheat futures are lower this morning, likely in reaction to bottoming action in the dollar and improved rain chances in the southern plains spelling the potential for a stronger start to the HRW planting season around the corner.  Rain and cloudiness will accompany cold air into the southwest U.S. Plains helping to hold temperatures up above the damage threshold.  Rainfall today through Thursday with some showers Friday in the southwestern Plains bolster soil moisture for better emergence conditions.  Globally, wheat prices are softer signalling caution to the wheat market.  December Chicago wheat finished the week up 1 ¼ cents, but 18 cents of the early week highs.  Last night, Dec Chicago wheat was down 6 cents to 5.44-1/4; Dec KC wheat shed 2 to 2 cents to 4.69-1/2; and, Dec Mpls was off a penny to 5.41-1/2.

CATTLE

Live cattle futures are called mixed.  Chart weakness for a third consecutive week favors the bears.  Cash markets were softer last week ranging for $102-104/cwt, down $2-3 from the previous week.  Retail values faltered, too with choice carcasses trending lower after a strong week of couple weeks ago.  Weaker cash and retails could lead to a lower bias this week.

HOGS

Lean hog futures are called mixed.  Strength in hog prices last week was led by the actively traded nearby October contract gaining $6.175.  The push was fueled by strong demand with a jump in export business as weekly sales surged to 53,600 metric tons, well above 4 week averages.   Hog futures are moving into over-bought condition, and resistance at $60 over October, which settled at 59.82 last Friday will limit near-term upside.

Author

Matthew Strelow