CBOT Grain Futures Calls:
-December corn called 1 to 3 lower.
-November soybeans called 3 to 5 lower.
-December CBOT wheat called mixed.
US dollar is down 11 at 75.39. December crude is down $.05 at $79.91. Dow futures are up 51 points.
-Commerce Department will report the Producer Price Index at 730 am CST. The trade expects prices at the wholesale level to be unchanged in September. They were up 1.7% the previous month due to gasoline prices.
-Commerce Department will report on Housing Starts for the month of September at 730 am CST. The trade expects construction of new homes and apartments up by 2% from the previous month.
-The trade is watching the upcoming Bank of England decision on interest rates. The trade expects them to continue its quantative easing “easy money” policy.
-Investors suggest gold prices have risen due to the falling dollar and not concern over inflation.
2010 Allendale Outlook Conference – January 22-23 in Crystal Lake, IL
Register today! Call or go to our conference page for more info.
-Widespread rain will start in the west today. Eventually all areas will see rain sometime between this afternoon and Friday. Harvest will be restricted to today, tomorrow in the east, and Sunday/Monday during this time. Next week’s forecast shows rain and possibly snow.
Grain Market Influences:
Corn summary… We all know this market simply WANTS to be bullish. Whether there is solid reason behind that or not does not matter in the near term.
Overnight, December corn pushed to new highs for the uptrend.
Israel seeks 30,000 tonnes of corn.
The deputy head of the China’s National Development and Reform Commission projected the top three corn and soybean provinces in the northeast would not see production fall by any more than 4% due to this year’s drought.
Soybean summary… November soybeans posted their second highest close of the uptrend. Big harvest delays and general commodity buying were cited. This morning there was talk that Chinese crushers may have cancelled two or three cargoes of US soybeans.
South American analysis group Celeres, estimates the Brazilian soybean crop is 12% planted. The group estimates production this year will be a huge 64.7 million metric tonnes.
Wheat summary… Direction of the market has changed as futures held support 495 and took out resistance at 515. An informal survey of farmers in IL seem to shaving intended acres due to weather and the need to focus on getting corn and beans harvested.
Algeria purchased 300,000 tonnes of optional origin wheat overnight.
Japan seeks 133,000 tonnes of food wheat in its regular weekly tender. 91,000 tonnes of that is slated from the US.
Kazakhstan reports its grain harvest at 22.7 million metric tonnes. That is 5.7 mmt more than last year.
Israel seeks 30,000 tonnes of feed wheat.
Iraq seeks 100,000 tonnes of wheat.
2010 Allendale Outlook Conference featured speakers:
Drew Lerner, David Hightower, and David Chatterton. More info…
-Wholesale beef closes up $.90 for choice and up $.12 for select.
-Pork carcass cutout closes up $.22.
-Cash hogs are called steady to 50 cents higher.
December Lean Hogs are called 10 to 25 higher.
----Chart support 53.10 and resistance 55.20
December Live Cattle futures called 10 to 20 lower.
----Chart support 85.00 and resistance 85.60.
November Feeder Cattle futures are called steady to 10 lower.
----Chart support 93.50 and resistance 95.80.
Livestock Market Influences:
Lean hogs summary… While lean hog futures have stalled out in recent days, so far there is no smoking gun type of topping news. Wholesale pork in recent days has been posting small gains. Today it was up 22 cents on the afternoon report.
Live cattle summary… Friday’s Cattle on Feed report came and went without much of an impact. Instead, traders spent time jawing about possible Deutche Bank buying, moderate gains in the day’s wholesale beef trade, and prospects for higher cash cattle this week.
CBOT Grain Futures Calls: