CBOT Grain Futures Calls:
-December corn called 7 to 10 lower.
-November soybeans called 17 to 22 lower.
-December CBOT wheat called 5 to 8 lower.
US dollar is up 9 at 75.81. November crude is down $.22 at $74.96.. Dow futures are down 36 points. Yesterday the Dow closed above 10,000.
-American Petroleum Institute indicated crude oil stocks rose by 172,000 barrels last week. That was better than expectations of a 700,000 barrel increase. The EIA gives us their take later this morning.
-Weekly jobless claims will be released this morning. The trade expects a 525,000 number compared with 521,000 last week.
-China reports real estate investment rose 17.7% in the first nine months. Through August that was up 14.7%. Economists suggest September levels therefore were a strong 37% in September.
Go to our homepage, www.allendale-inc.com, to view our latest market update videos, recorded twice a day (before and after the grain market session).
-No change in the seven day forecast. Rain will finish up today, clear for the weekend, then return by mid next week. This morning’s forecast is a little drier in the late next week forecast.
Grain Market Influences:
Corn summary…Volatility was the dominating force in the grain markets today. Corn opened higher and then looked to set back and remain calm. That only lasted about 5 minutes where it found another round of buying. That second round was also quickly sold off leaving corn just slightly higher until around noon. At that point corn was sold off again and aggressively so.
Buenos Aires Grains Exchange reports corn planting at 49% compared with 49.5% a year ago.
Soybean summary… Erratic trading was found in the beans today as well. It was another day of moderate buying dominating over only small selling. There were a couple times where moderate selling arrived forcing the beans lower, showing that this move higher could be quickly corrected if only some harvest was talking place.
Wheat summary… This is the market affected by the most volatility today. It was not a fun market to be day trading in. Early support was found as this is still a cheap commodity for funds to be buying. Following that buying a regular calm setback followed only to see a quick round of aggressive selling dropping this market 10 ½ cents in less than 10 minutes.
Buenos Aires Grains Exchange drops its 2009/10 wheat production estimate from 7.55 to 7.5 million metric tonnes.
Japan purchased its planned 132,000 tonnes of wheat.
Strategie Grains suggests EU wheat production will be 129 mmt versus last year’s 140.1 crop.
Algeria retenders for 50,000 tonnes of wheat. They cancelled a tender previously due to high prices.
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-Wholesale beef closes up $.03 for choice and up $1.03 for select.
-Pork carcass cutout closes up $1.01.
-Cash hogs are called steady.
December Lean Hogs are called steady to 10 higher.
----Chart support 52.10 and resistance 56.20
December Live Cattle futures called mixed.
----Chart support 82.75 and resistance 85.60.
November Feeder Cattle futures are called steady to 10 higher.
----Chart support 92.50 and resistance 95.80.
Livestock Market Influences:
Lean hogs summary… New highs for this uptrend were reached today. There continues to be interest from outside money in buying hogs. Yesterday’s pork cutout was up and today’s cutout was up $1.01. Expect the higher futures trend to continue.
Live cattle summary… Last night we became more aggressive in our commentary in suggesting this market was at a bottom. We even brought up our objective on the short position to only one tick lower than the pit session close. It’s too bad that last night’s electronic session got down to EVEN with last night’s close and went up from there.
CBOT Grain Futures Calls: