Corn – First major chart resistance at 426 ½, likely cash selling at Dec over 420, no clear sign of funds
↓ Dec made it past some first and minor chart resistance levels but found much more resistance yesterday approaching the first major chart resistance which is at 426 ½
↓ Resistance should also be expected in the 420’s as that is fair value for corn and no longer oversold
↔Again fund short covering yesterday was a “maybe”, volume supports the idea but not open interest
↑ Ethanol surged last week to 1106K, it may be expected strong again today following that last report
Beans – Heat reduced slightly in 15 day outlook, all eyes clearly on each weather map update
↓ Temps are still warm but the total amount of heat in the 15 day outlook was reduced this morning
↔Drew Learner makes mention in our conference yesterday why lasting heat may not be able to hold
↔Yesterday eased back support at 10:45 which is exactly when the 10 day noon maps finish running and we are seeing an easing back last night on less heat, clear to say weather is the #1 guide for beans
↓ There has been a sentiment that if Trump is elected it will cause less China bean buying, history suggests that is exactly the opposite of true but we still need to know that is mindset right now
↔Like corn, we would give fund buying a “maybe” yesterday, there were signs but not clear signs
Wheat – Overseas trade calm, MN should generally see a bit more pressure
↔Last night overseas wheat traded calm to just a fraction lower
↓ MN should generally see more pressure than KC or CHI due to the strong spring wheat ratings
↔There were 3 weeks where exports looked like they were starting to surge but the last 2 weeks have
been more moderate, right now exports might be considered a neutral factor
Cattle – BB continues lower, no fundamental news for yesterday’s bounce, futures/cash gap narrows
↓ Yesterday’s PM BB was choice -0.23 Select -1.67 packer BE at 194.51, packer cushion $3.11
↓ Boxed beef continues lower strongly suggesting yesterday’s bounce is a selling opportunity
↔Yesterday’s buying may have been an easing of caution to narrow the gap between cash and futures which as of this morning is around $3 ($1 - $3 above or below cash is considered normal this year)
↔There aren’t many nearby chart levels to use for guidance, first support in October is 183.45, first resistance is 188.55 current price levels are almost directly between those chart points
↓ The underlying fact that can’t be ignored is that BB is clearly still trending lower