Corn – Possible Friday profit taking in overnight, following wheat lower, strong demand this week
↓ Overnight looks to be taking some Friday profits after a 16 ¾ cent rally this week
↓ Wheat is offering some spill over resistance to corn, overnight traders watch wheat closely
↑ Ethanol improved further to being a strong report this week and exports were very strong with more 8 AM sales seen yesterday, a demand lead recovery is slow but has solid fundamentals behind it
↔More resistance is likely to be seen anytime Dec moves above the 420 fair value level
Beans – Rain increases for both BRA/ARG, Friday profit taking, demand strong but overshadowed
↓ Morning maps have an increase in rains for both BRA and ARG, trade now likely to focus more on,these maps, especially overnight traders
↓ Some Friday profit taking can be expected after a 26 ¼ cent bounce this week
↑ Demand was strong for beans this week, some of it may be overshadowed by the very strong sales seen in corn, some speculators may have expected the same export increase in beans
↔Trade may become a bit more choppy as the upcoming election is causing some cautious trade, this applies to both beans and corn, there is uncertainty over what election outcomes might do to exports
Wheat – A significant increase to HRW rains this morning, exports strong but also overshadowed
↓ Morning maps show a significant increase to rains in TX/OK/KS, now with some totals over OK seeing up to 5 ½” of rain, most of this is late in the forecast days 8 – 10
↑ Exports were strong at 533K, this would likely catch more attention if it wasn’t for the very strong corn and strong bean exports seen yesterday, this was the 4th week in a row of increasing exports
↓ Russian values are moving lower, another issue overnight may watch more than the day session
Cattle – Cash trade reports of 189 – 192 yesterday, a likely week average 190.50
↔Yesterday’s PM BB was choice -0.24 select -1.43 packer BE at 195.42, packer cushion $7.54
↑ Cash trades were stronger than expected yesterday coming in as high as 192 but the bulk of the trade seen was 189 – 190, from all this we may assume a weekly average will be close to 190.50
↔As of the close yesterday futures were priced assuming a price level right at 190.50
↓ While the cash news is continued strong this week, a note of caution might be seen now that BB has eased back 3 days in a row, let’s continue to watch BB closely
↔Dec is now very close to 6 month highs (190.075) and 12 month highs (191.625)