Corn – Multiple mixed influences but better support will be expected again with Dec under 420
↓ Wheat and outside markets are spilling over some light pressure to corn in overnight trade
↑ Funds bought 15K but their recent pattern has been erratic, selling one week then buying the next
↑ The further under 420 December goes the more buyers we can expect, both end user buying as well as speculative buying, aggressive support can be expected if Dec moves under 410
↔Harvest pace is likely to pass 75% on today’s report, that means more attention is likely to turn to the demand side which has been strong over the last 4 weeks
Beans – Active rains for BRA, moderate for ARG, funds sold 19K, attention half on demand/half on SA
↓ Morning 10 day maps still have active rains for BRA and moderate rains for ARG
↓ Funds were sellers of 19K, funds have now sold a solid amount 2 weeks in a row
↔Trade is going to consider harvest “done”, this means traders will be watching for the next big headline keeping most attention on demand (bullish this morning) and SA weather maps (bearish)
↔Similar to corn we can expect better end user and speculative buying as Jan beans fall under $10, the most recent low for Jan was 980 ¾ and the contract low is 973 ½
Wheat – HRW rains still in the forecast for days 6 – 7, funds are choppy/quiet in wheat
↑ Overnight wheat saw the best support, if overnight traders are going to add support due to uncertainty then those traders would be in wheat
↓ There are still active HRW rains in the morning 6 – 7 day forecast
↔Funds have not been a major influence in wheat over the last 4 weeks, exports are larger influence
Cattle – Funds bought 5K, COF supportive but not as bullish as expected, BB uncertain
↔Friday’s PM BB was choice +1.07 select +0.74 packer BE at 196.00, packer cushion $8.12
↑ Funds bought 5K last week making that the 5th week in a row, now long 90K or 58% of record
↑ COF put Placements at 98.1, lower than 100 but not as low as analysts expected at 96.0
↔BB has been choppy lately, it was higher on Friday but that followed a 3 day setback, for now we will call it choppy and sideways until a new trend is established
↔Futures finished Friday priced very close to the 190.50 we expect to see on the average cash report
↔Slaughter continues to slow, will that finally mean a higher showlist on today’s report? speculating/hedging