CBOT Grain Futures Calls:
-December corn called steady to 2 lower.
-November soybeans called 1 to 4 higher.
-December CBOT wheat called steady to 2 lower.
US dollar is down 12 at 76.99. November crude is up $.19 at $66.08. Dow futures are up 24 point.
-Durable goods orders, for the month of August, will be released today. The trade expects to see a .5% increase.
-Consumer sentiment, for the month of September, will be released today.
-New home sales, for the month of August, will be released today. The trade expects a 1.6% increase to a seasonally adjusted rate of 440,000.
-Yesterday’s existing home sales report showed a surprising drop of 2.7% for the month of August. Economists were expecting an increase.
-Yesterday’s close in crude oil was the lowest since July 16.
-A survey of small businesses by Chase Card Services reveals four out of five are on a moderate to aggressive growth strategy. 75% of respondents said they believe the economy and their business will be better in three to six months.
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).
-Temps will trend lower early next week. 32 to 36 degree temps will be in North Dakota and western Minnesota Monday morning. At the end of next week another chance of frost could hit parts of North Dakota, South Dakota, and Minnesota.
Grain Market Influences:
Corn summary… Futures rallied sharply for the 3rd day this week based on strength in wheat, rain delayed harvest, and the on-again/off-again frost talk. Dec futures are +18 cents for the week and getting near 340-349 chart resistance. The dollar was +60 during the grain trade and the crude oil was down 280 yet corn held gains on very light volume.
Soybean summary… The opening felt very weak as the strong dollar, weak crude oil and lower gold pointed towards a heavy day. But export sales were strong and exceeded expectations. Shipments however were non-existent. Crush was neutral.
India is considering a tax on vegetable oil imports. It depends on how well the winter rapeseed crop develops.
Wheat summary… The wheat led the entire grain floor for the second day. A good tender line up with Bangladesh bidding for 200,000 tonnes of wheat and now Morocco in for 600,000 tonnes provided good support even though export sales were neutral at 496k tonnes. The wheat market is in the middle of a pricing war.
International Grains Council raised its estimate of world wheat production from 662 to 666 million metric tonnes. Increases were seen for Russian and Ukraine but a decline was noted for Argentina.
Japan purchased 10,000 tonnes of Canadian origin food wheat in its regular tender.
Taiwan purchased 38,170 tonnes of US wheat overnight.
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-Wholesale beef closes down $.55 for choice and down $.82 for select.
-Pork carcass cutout closes down $1.00.
-Cash hogs are called steady to 50 lower.
October Lean Hogs are called 10 to 20 lower.
----Chart support 49.05 and resistance 51.50
October Live Cattle futures called 10 to 20 lower.
----Chart support 85.00 and resistance 87.40.
October Feeder Cattle futures are called 10 to 20 lower.
----Chart support 96.15 and resistance 100.10.
Livestock Market Influences:
Lean hogs summary… Little action was seen in futures today. The trading range on the October contract was 82 cents (which is tight these days). For the cash end, wholesale pork fell $1.00 this afternoon while cash hogs were steady to lower. Wholesale pork has been down for three days in a row while cash hog prices have fallen for five days.
Live cattle summary… Trading was limited for live cattle futures as well. Officially live cattle futures are in a downtrend. Deferred futures have taken almost all their hopes off the table for higher prices in future months. That disappointment came because we have not seen much consumer interest returning to beef yet.
CBOT Grain Futures Calls: