Afternoon Market Highlights


Highlights

· The U.S. dollar is weaker, trading 0.658 points lower at 93.832.

· The DJIA is weaker, trading down 28 points at 23,411.

· Nearby December Crude Oil futures are currently trading $1.00 lower at $55.76 per barrel.

· The Cattle on Feed Report will be released on Friday, November 17th at 2:00 PM CDT.

· The NOPA crush report will be released tomorrow at 11:00 AM CDT.

Grains and Oilseeds:                                                                    

Corn

Corn traded 4 – 4 ¾ cents lower today as harvest progresses and thoughts of a record crop weigh on the market. December corn put in a new life of contract low of $3.37 ¼. Dec closed at $3.37 ½, July closed at $3.66 ¾ and Dec 18 closed at $3.83.   

Current spreads: Z/H 12 ¾ cent carry, H/K 8 ½ cent carry, Z/N 29 ¼ cent carry.

· Ethanol spot prices were sharply lower today following lower corn futures trade with December spot swaps down 4.25 cents per gallon.

· Traders continue to talk lower Ukrainian corn production with some analysts predicting production as low as 24 million metric tons. Based on current expectations, 18-19 million metric tons would be left for export.  

· A private analyst pegged Brazilian corn production to come in at range of 85-90 million metric tons vs. 100 million metric tons estimated previously.  

· U.S. exporters sold 133,096 metric tons of corn to unknown destinations for delivery in the 2017/18 marketing year.  

Oilseeds

Soybean futures finished lower as improved South American weather added to bearish sentiment in the market. Jan beans closed 6 ½ cents lower at $9.67 ¾, July closed 6 ½ cents lower at $9.97 and the Nov 18 closed 7 cents lower at $9.89 ¼.

Current spreads: F/H 11 cents carry, H/K 9 ½ cents carry, N/X 16 ¼ cent inverse.

· Cash basis for soybeans at Midwest elevators, processors and river terminals were steady to higher due to slow grain sales.

· Rains in Mato Grosso yesterday were highly beneficial to Brazilian soybean planting and planting should be wrapped up within the next 2-3 weeks. This should allow ample planting time for the second corn crop.

· Farmers in Brazil’s Mato Grosso region have been slower seller this year, with just 32.8% of the 2017/18 crop being sold as of October 31st. This was up 11.4% from 21.4% sold a month earlier, but still behind last year’s selling pace that saw 36.3% of the crop sold in the same period.

· Moore Research allows us to share two seasonal trades each month.  Buying July soybeans on November 16th and unwinding this long position on December 28th is a winner in 15 of the past 15 years, yielding an average profit of $2,148. 

Wheat

Chicago wheat traded ¼ - 3 ¾ cents higher, Kansas City traded ½ - 2 cents higher and Minneapolis trade was ¾ - 4 ¼ cents lower. The Minneapolis premium over KC and Chicago is $2.01 for December contracts and $197.75 for March contracts.

Current Spreads: Chicago Z/H 17 cents carry, KC Z/H 17 ¼ cents carry, Mpls Z/H 14 ¼  cents carry, Mpls H/K 6 ¼ cents carry.

· KC and Chicago wheat futures were mostly higher today, finding strength on short covering and technical buying after yesterday’s losses. The Minneapolis wheat market traded lower due to weaker cash markets, technical selling and weaker corn. Japan’s wheat tender also left Minneapolis wheat out of the mix, further adding to bearish sentiment in the spring wheat market.

· An Egyptian court effectively re-instated a ban on wheat imports that contain any amount of the common grain fungus ergot. This re-opens a long standing dispute over Egypt’s import rules that have disrupted trade in the past.   

· U.S. hard red winter wheat basis was flat and unchanged today. Protein premiums are steady and farmer selling is minimal.

· France's farm ministry today trimmed its soft wheat crop estimate by 400,000 MT from October, at 37.5 MMT.

Livestock

The cattle markets were lower today as December cattle settled $1.075 lower at $119.50 while February cattle were down $1.25 at $125.15. Feeder cattle traded lower as well, showing a $1.075 loss on November feeders at $157.625 and a $3.075 loss on January feeders at $153.90.

The cattle on feed report will be released on Friday, November 17th. Trade estimates for on feed numbers as of November 1st are expected to come in at 106.3%. October placements are expected to come in at 109.4% and marketings are pegged at 105.0%.

· Beef packer margins came in at $42.55/head.

· Boxes were mixed today. Choice traded down $1.68 at $211.13 and Selects were up $0.23 at $194.06.

Lean Hogs saw lower trade today as the December contract traded lower by $2.325 to settle at $59.975 while the February contract traded $2.80 lower at $67.50.

· This morning’s carcass values were $0.04 higher at $81.43. Bellies were $2.66 higher at $126.72 with 177 loads traded.

· Pork packer margins came in at $38.70/head.