CBOT Grain Futures Calls:
-December corn called 2 to 4 higher.
-November soybeans called 10 to 15 higher.
-December CBOT wheat called 7 to 10 higher.
US dollar is down 9 at 75.67. December crude is down $.19 at $78.83. Dow futures are down 42 points.
-"Oil market participants are betting that equity markets only take a pause and that positive third-quarter results in the U.S. corporate sector and better U.S. housing market data continue to fuel economic optimism," said an analyst at Commerzbank Commodity Research.
-Thomson Reuters Proprietary Research says so far in this earning’s reporting season, 79% of companies have beaten estimates. The group indicates normally 61% beat estimates.
-Chinese GDP grew more than 7% in the first nine months of 2009 according to a Chinese government official.
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).
-Rain will start in the west later tomorrow and work through the cornbelt through Friday. Temperatures will remain normal to below normal through the next ten days. After a weekend of moderate harvest progress, delays will continue soon.
Grain Market Influences:
Corn summary… It was a thin trade in corn today chopping just above and below unchanged for most of the day. Volume on the entire day’s trade for December was only 69,000 contracts. That is well below a normal moderate volume of 100,000.
Soybean summary… We are finally coming up on the harvest window that many have been waiting for. Harvest talk is that combines will take out beans one way or another this weekend. Many are discussing drying the beans down even if they are harvested at 20%!
There are rumors that China has cancelled two or three cargoes of US soybeans for January delivery.
Wheat summary… This is another market that is looking to get hit by forced fund liquidations next week. This is also a market that saw only light volume much as the corn did. This shows that there is some concern about what will happen with the fund selling next week.
Russia’s biggest grain transportation company indicates there needs to spend another $100 billion roubles to elevators and grain transportation to hit an annual 40 million metric tonne grain export target.
Bangladesh restarts a tender to buy 100,000 tonnes of wheat.
Turkey sells 25,000 tonnes of durum wheat.
Contact Allendale to schedule a speaker for your Fall/Winter meetings!
-Wholesale beef closes up $.50 for choice and up $.17 for select.
-Pork carcass cutout closes up $.30.
-Cash hogs are called steady. There is some talk of firmer bids.
December Lean Hogs are called steady to 10 higher.
----Chart support 53.10 and resistance 55.20
December Live Cattle futures called mixed.
----Chart support 85.00 and resistance 85.60.
November Feeder Cattle futures are called steady to 10 higher.
----Chart support 93.50 and resistance 95.80.
Livestock Market Influences:
Lean hogs summary… Part of the rally last week was due to the lower slaughter which was realized last week. After a few weeks of slaughter running .5% smaller than last year, last week’s kill fell to 3.5% smaller. This week’s kill ran 2.7% according to today’s USDA stats.
Live cattle summary… As expected, cattle feeders placed more cattle in September than last year, 4.7% more to be exact. This was just under the average trade guess of 5.5% more. This makes it three months in a row of higher placements.
CBOT Grain Futures Calls: