CBOT Grain Futures Calls:
-December corn called 3 to 5 higher.
-November soybeans called 3 to 5 higher.
-December CBOT wheat called 3 to 5 higher.
US dollar is down 45 at 76.21. Overnight it broke to new lows for this downtrend. It is currently back above the 76.04 lows from September 23. November crude is up $0.81 at $70.38. Dow futures are up 64 points.
-Weekly jobless benefit claims are expected to drop from last week’s 551,000 down to 540,000.
-Yesterday’s weekly energy stocks report showed a decline of almost 1 million barrels compared with expectations for a 1.9 million barrel increase.
-Due to signs of better economic growth in the US and Japan, Barclay's Capital expects this year’s crude oil demand to fall 1.55 million barrels a day. The previous forecast was for a larger drop.
-As was expected, the Bank of England decided to keep interest rates unchanged at 0.5%.
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 major changes in today’s forecast. Look for freezes in Kansas, northern and central Missouri, central Indiana, and southern Ohio. The severity of the freeze has been reduced a little.
Grain Market Influences:
Weekly Export Sales report is viewed as bullish wheat, neutral soymeal and soyoil, and negative soybeans and corn.
Corn summary… If the last few days of trading feel familiar you would be right. In early August we had one of our first frost concerns where buying began to show up and then on August 3rd the funds came in and bought on a large scale running the corn up to 376.
Israel purchased 20,000 tonnes of EU corn overnight.
Soybean summary…1 to 5” of snow. That is the forecast that the GFS weather model put out for northern IL, southern IA, northern MO, NE and northern KS. When it comes to beans that is not what we want to see as many people know. This is a forecast for Sunday which is down the road too far to get very worried about but just ads another factor for support.
Steady Wet weather delaying bean harvest provides support but good yields continue to be reported. USDA report Friday
Taiwan purchased 58,000 tonnes of US soybeans overnight.
Wheat summary… Much like the corn, wheat had an inside trading range day showing that it is simply following row crops again. Due to this we will need to keep a close eye on corn as we have been doing for some time now. It remains hard to get bullish wheat.
Iraq purchased 200,000 tonnes of US wheat overnight.
Saudi Arabia is seeking 550,000 tonnes of any-origin wheat for delivery between December and February.
Japan seeks 52,200 tonnes of food wheat in its regular tender. Overnight, they also purchased 149,000 tonnes of feed wheat with 86,000 of that from the US as expected.
Israel purchased 15,000 tonnes of EU feed wheat overnight.
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-Wholesale beef closes down $.70 for choice and up $.07 for select.
-Pork carcass cutout closes down $.33.
-Cash hogs are called steady.
December Lean Hogs are called 30 to 50 higher.
----Chart support 47.75 and resistance 50.20
December Live Cattle futures called steady to 10 lower.
----Chart support 82.75 and resistance 84.00.
October Feeder Cattle futures are called 10 to 20 lower.
----Chart support 92.10 and resistance 94.50.
Livestock Market Influences:
Lean hogs summary… Back in mid-August USDA was asked to buy pork. On September 3 they announced a $30 million purchase. Today’s big run higher was due to talk from congressmen encouraging USDA to purchase an additional $100 million in pork to support prices.
Live cattle summary… Today there were some light cash cattle trades at $81.50. That was down $1.50 from last week. That puts it directly next to the summer lows of $81! We noted yesterday that the trade was getting a second round of bearishness built up as deliveries against the October contract were big.
CBOT Grain Futures Calls: