NOTE: Doane will be closed Thursday and Friday in observance of Thanksgiving.
Grain and oilseed futures were marginally higher early Wednesday morning. The futures market will not trade on Thursday and will reopen Friday for a shortened day. Funds sold an estimated 8,000 CBOT corn contracts on Tuesday. Weekly ethanol production numbers will be released at 930 a.m. CST this morning. Dec corn remains in a narrow range with support at 3.56 and resistance at 3.68. Fundamentally, supply remains robust with the USDA estimating the 2015/16 corn crop as the third largest production in history at 13.654 billion bushels and the second highest yields at 169.3 bu/ac. Meanwhile, exports continue to lag behind expectations. December corn futures were up 1.75 cents to $3.66 early Tuesday morning, while March climbed 1.75 cents to $3.7125.
Soybean futures were higher early Tuesday morning despite the dollar index breaking above the 100.00 level, approaching the strongest dollar in nearly 13-years. While reports of how many bushels of soybeans are being stored by Argentine farmers varies widely depending on the source, there is consensus that any large amount of beans dumped on the world market due to the reshaping of their export policies will prove to add headwinds to prices. Brazil’s soybean planting progress is 66% complete, shy of last year’s pace of 74% and the five-year average of 78%. January soybeans were 1.25 cents higher to $8.65 per bushel early Wednesday morning, while December soyoil climbed .11 to 28.42 cents per pound and December meal was up $1.1 to $283.30.
Wheat futures closed sharply lower on Tuesday on improving US winter crop conditions and ample global stocks. The USDA reported the winter wheat crop rating up another point to 53% good-to-excellent. Winter wheat planting was at 96% complete, compared to the 100% five-year average. The improved winter wheat condition ratings, driven primarily by adequate rains over each of the last four weeks will keep pressure on futures already weighed by ending stocks that increased by 50 million bushels in the Nov WASDE. Weekly wheat export inspections were mid-range at 9.69 mil bu, compared to the estimate of 7.3 -14.69 mil bu. France is set to export wheat to Indonesia for the first time in seven years, underscoring the challenges faced by U.S wheat exports. December CBOT wheat futures fell 10 ¾ cents to $4.84 ¼ /bushel on Tuesday’s close, while Dec KC wheat lost 7 cents to $4.57 ½, and December MWE slid 7 cents to $5.09 ½.
Live cattle shook off early morning support to close lower on the day. Lack of market direction and light trading will push prices to both end of the pricing range during the holiday week. Large losses in feeder cattle prices have pushed into the live cattle trading. Sympathetic trading will keep the overall cattle complex choppy and volatile. Monday's cold storage report show that beef supplies increased slightly whereas the surprise was that frozen poultry supplies increased to 62 million pounds. Boxed beef cutouts gained on the day with choice up 1.16 to 203.95 and select up 2.07 to 193.12. Estimated daily cattle slaughter for 11/24 is 110,000 head vs 107,000 head last week and 117,000 head a year ago. Week to date is 219,000 head vs 213,000 head last week and 231,000 head last year. December live cattle closed down 2.475 cents to 129.70 cents/pound Tuesday, February futures closed lower 2.250 cents to 131.95. January feeder cattle closed down 1.40 cents to 164.00 and March feeders lost 1.40 cents to 162.075.
Lean hog futures traded both sides of the market closing lower on theday. The USDA's cold storage report showed the pork supplies were drawn down by a record amount for October inventories. Average retail pork prices for October of $3.973 per pound have supported large slaughter numbers. Last week’s large slaughter feels more about the short holiday week than increase in demand. Estimated daily slaughter reported today is 438,000 head vs 436,000 head for last week and in line with last year of 437,000. Weekly slaughter numbers are 878,000 head vs 874,000 head last week and right in line with last year of 873,000 head. December hog futures declined 0.075 cents to 57.45 cents/pound at the close Tuesday and April hogs declined 0.625 cents to 62.525 cents/pound.
ICE cotton futures closed higher on Tuesday. Prices are forming a technical U pattern. Since August the market has tested lows of 60.00 cents and bounced back. Strong support is in place for the nearby contracts with 60.00 while the market has rejected the 50 day moving average of 61.87 cents. Last week, cotton crop progress was reported at 64% completed, compared to 58% last week and the 74% five-year average. Last Thursday, net upland cotton export sales were reported at 194,400 RB for 2015/16, up 52% from the previous week and up 74% from the four-year average. Net sales of 2015/16 Pima cotton were 15,900 RB, a marketing year high, up significantly from the previous week and the prior 4-week average. Exports of 7,200 RB were up 47% from last week and 54% from the 4-year average with destinations of Vietnam, India, Thailand, and China. December cotton futures gained 0.73 cents to 60.47 cents/pound Tuesday morning, while May cotton climbed 0.29 cents to 62.77.