Corn – New 8 AM sales yesterday but Friday’s weekly report has questions, 430 still strong support
↔ Yesterday saw 8 AM sales for the first time in almost 2 weeks at 454K, given the recent lack of 8 AM sales though, there is some concern that Friday’s weekly report may be disappointing
↑ March 430 support was tested yesterday and last night, it continues to hold with solid buying there
↔ In recent weeks we have also seen a pickup in 8 AM sales when March is near 430
↔ There has been some talk of crude’s influence on corn but the correlation between those markets is only occasional right now, this would be a more important factor if crude were to set back $10 or more
Beans – A slight easing of export fears, SA weather still solid, Friday’s weekly exports will be strong
↑ A streak of recent 8 AM sales has slightly eased export fear pressure slightly
↑ From that streak of 8 AM reports we already know Friday’s weekly totals will be strong
↓ SA weather still has no issues to be concerned over, there hasn’t been concern since early October
↔ Recent resistance has been found in Jan around 990, that is still far below where fundamentals would suggest resistance closer to 1030 but for now the 990 level has been tough to cross
Wheat – Dollar still eased slightly but not showing signs of a turn lower, technical bounce
↔ The dollar remains eased back from recent highs but is not yet showing signs of a new turn lower
↑ After yesterday’s active selling a small technical bounce was seen, likely aided by not seeing the dollar move higher last night, March CHI can bounce to 571 ¾ and still hold the downtrend line
↓ HRW GTE rating now at 55% which ties the best rating for this week in 6 years
Cattle – Showlist +22K, BB higher, no update on screwworm story, seasonal discussion
↔ Yesterday’s PM BB was choice +2.30 select +1.67 packer BE at 185.25, packer cushion -$1.26
↓ Showlist for this week is +22K, not a good combination with still negative packer profit levels
↔ BB did bounce yesterday but packers also paid up +1.34 last week so packer profits remain sub $0
↔ Due to seasonal trends not working well in the last 2 years we have not mentioned them but we should mention that the current seasonal trend is for a recent bounce (which we have seen) followed by a setback from now through mid December
↔ The story on screwworm yesterday was that it was found in 1 head, the USDA did shut down imports of cattle from Mexico and called it “temporary”