Afternoon Market Highlights


Highlights

· The U.S. dollar is stronger, trading 0.112 points higher at 94.39.

· The DJIA is stronger, trading up 25 points at 23,408.

· Nearby December Crude Oil futures are currently trading unchanged at $56.75 per barrel.

· The 6-10 day weather forecast calls for cool weather across the central and eastern Corn Belt. Precipitation will be somewhat likely for the eastern Corn Belt while the central Midwest and southern plains will see abnormally dry conditions.

Grains and Oilseeds:                                                                    

Corn

Corn traded 1 ¼ - 2 cents lower today on spillover weakness in the soybean and wheat markets. December corn traded in a 2-3 cent trading range and held above its most recent contract low of $3.40 ¾. Dec closed at $3.42 ¼, July closed at $3.71 ¼, and Dec 18 closed at $3.87 ¼.   

Current spreads: Z/H 12 ½ cent carry, H/K 8 ¼ cent carry, Z/N 29 cent carry.

· Corn basis values were higher for the week across the Corn Belt and southern plains as grain movement remains light.

· U.S. corn export inspections came in at 0.376 million metric tons in today’s report vs. trade expectations of 0.5-0.7 million metric tons. Last week’s corn export inspections came in at 0.445 million metric tons.

· Corn harvest progress is expected to come in near 83% complete in today’s crop progress report vs. the 5 year average of 90% complete. Harvest progress may be somewhat disrupted this week as precipitation is likely in the upper central Midwest. . 

· The extended weather forecast for Argentina shows a wetter bias in western portion of the country but drier risks for the heart of their corn growing region will remain in the next 11-15 days.

Oilseeds

Soybean futures finished 12 - 13 cents lower on technicals and improving weather conditions in Brazil. The January bean and meal contracts broke through their 50, 100 & 200-Day MA. Jan beans closed 12 ¾ cents lower at $9.74 ¼, July closed 12 cents lower at $10.03 ½ and the Nov 18 closed 10 ¾ cents lower at $9.88.

Current spreads: F/H 11 ¼ cents carry, H/K 9 ¼ cents carry, N/X 15 ½ cent inverse.

· Cash basis for soybeans in the Midwest was steady to higher as cash sales across the elevator scales are light amid lower futures prices.

· Soybean harvest progress is expected to come in at 95% complete in today’s crop progress report. This would be a 5% change over the previous report which would put this year’s harvest on par with the 5 year average.

· U.S. soybean export inspections are came in at 2.087 million metric tons in Monday’s report vs. trade expectations of 1.7-2.4 million metric tons. Last week’s soybean export inspections came in at 2.491 million metric tons.

· This morning, the USDA issued an export notice of 135,000 tons of soybean cake and meal sold the Philippines from private U.S. exporters.

· As of Friday, Brazilian soybean planting was around 56.2% complete, down from 65.4% a year ago and also behind the 5 year average of 60.1%.    

Wheat

Chicago wheat traded 4-7 cents lower, Kansas City traded 4-6 cents lower and Minneapolis trade was 10-15 cents lower. The Minneapolis premium over KC and Chicago is $2.05 - $2.09 for December contracts and $2.02 – $2.03 for March contracts.

Current Spreads: Chicago Z/H 18 ¼ cents carry, KC Z/H 16 ¾ cents carry, Mpls Z/H 13 ¾  cents carry, Mpls H/K 6 cents carry.

· The U.S. wheat markets all traded lower as last week’s bounce failed to garner follow through buying from today’s session.

· European wheat futures were lower today, following lower trade in the Chicago wheat market. U.S. and western European exports are being limited by exports out of the Black Sea region and stiff export conditions will continue to be fueled by large global wheat stocks.  

· Wheat planting progress is expected to come in at 95% complete in Monday’s crop progress report. This would be a 4% change over the previous report which would put this year’s planting 1% ahead of the 5 year average.

· U.S. wheat export inspections came in at 0.301 million metric tons in Monday’s report vs. trade expectations of 0.25-0.45 million metric tons. Last week’s wheat export inspections came in at 0.284 million metric tons.

. Russian wheat prices were under pressure.

Livestock

The cattle markets were mixed today as December cattle settled unchanged at $120.575 while February cattle were down $0.350 at $126.400. Feeder cattle traded mixed today, showing a $0.225 gain on November feeders at $158.700 and a $0.20 loss on January feeders at $156.975.

· Beef packer margins came in at $44.15/head.

· Boxes were lower today. Choice traded down $0.76 at $213.09 and Selects were down $0.46 at $194.05.

Lean Hogs saw mixed trade today as the December contract traded lower by $0.175 to settle at $62.30 while the February contract traded $0.50 higher at $70.300.

· This morning’s carcass values were $0.01 higher at $81.93. Bellies were $1.38 lower at $122.43 with 107 loads traded.

· Pork packer margins came in at $38.15/head.