Afternoon Market Highlights


Highlights

  • The 6-10 day outlook in the corn belt for weather remains cool and wet as producers continue to finish up harvest.
  • As of 2:35pm, the U.S. $ is higher, the Argentine Peso is down 0.50% at 35.45 and the Brazil Real is up 0.70% at 3.75.
  • Veterans Day will be observed next Monday, November 12th pushing the Export Inspections and Crop Progress reports to Tuesday at 10:00am and 3:00pm CST respectively. 

Corn

  • Corn prices settled higher on the close from many adjustments to the WASDE and Crop Production report. World carryout nearly doubled from Chinese revisions starting back in 2007/08. The new corn world carryout is now 307.51 mmt, up 148.16 mmt from the October WASDE report.
  • The Crop Production report showed bullish signals as they lowered corn yield to 178.9 bpa, down 1.8 bpa. The U.S. corn carryout was lowered to 1.736 billion bushels in relation to the decrease in yield.
  • December corn hit a low of $3.66 to a high of $3.79. December corn was able to climb back up as the markets closed for the afternoon.
  • Weekly corn export sales rebounded back up for the first time in four weeks to steady levels. Corn export sales were at 701,500 mt, in line with estimates.
  • December corn closed up 1¼c at $3.73½, July closed up 1¾c at $3.99¼ and December 2019 closed up 2½c at $4.05 ¼.
  • Spreads: Z/H 11½c carry, Z/K 19¼c carry, Z/N 25¼c carry. 

Oilseeds

  • The soybean market had a choppy day of trading as prices settled slightly lower on the close. The bean yield was changed to 52.1 bpa, down 1 bpa as cool and wet weather has affected the crop condition this past month. Exports were finally cut from 2.060 to 1.900 billion bushels, down 160 million bushels. This resulted the U.S. soybean carryout to jump up 70 million bushels to 955 million bushels.
  • January soybeans broke through resistance levels of the 50-day moving average of $8.65¾ before rising back above the 100-day moving average of $8.76¾. January beans only settled ½c down at the close to $8.79.
  • The soybean export sales were not surprising at another poor week. Export sales were below the range of 400,000-700,000 mt at 388,400 mt. Soymeal remained steady at 255,100 mt, while soyoil stayed strong on the upper end of the estimates at 22,400 mt.
  • November soybeans closed down ¼c at $8.67½, July closed down ¼c at $9.18¼ and November 2019 closed up 1¾c at $9.31¼.
  • Spreads: X/F 11¾c carry, X/H 24½c carry, X/K 37¾c carry, X/N 50¾c carry. 

Wheat

  • The wheat market fell on the day as world stocks increased. The U.S. wheat carryout dropped 7 million bushels to 949 million bushels. The world carryout rose above estimates of 257.50-261.20 mmt to 266.71 mmt.
  • December Chicago wheat broke through the 50-day moving average for the first time since September 4th. December Chicago wheat traded from a low of $5.03¼ to a high of $5.17. December Kansas wheat fell below the $5.00 mark which hasn’t happened since November 2nd, with the next level of support at $4.84½. Minneapolis December wheat rests above the $5.80 level, not able to hold over the 50-day moving average.
  • Wheat export sales exceeded expectations at 661,200 mt, up roughly 79,000 mt from last week’s sales.
  • December Chicago wheat fell 2½c at $5.07¾, Minneapolis December wheat decreased ¾c at $5.80, and Kansas December wheat settled 5c lower at $4.97¼.
  • Spreads: MWE Z/H 4¾c carry, KW Z/H 21½c carry, CW Z/H 12¼c carry. 

Livestock

  • Hog prices were mixed on the day. December hogs traded sideways as another week of steady exports were reported. Weekly pork export sales had another consistent week at 21,100 mt, down 7,000 mt from last week’s sales.
  • December lean hogs rose 10c at $55.62½ and February decreased $1.10 at $60.12½.
  • Live cattle rose at the close. December live cattle broke above $117 before hitting resistance levels of $117.27½. Feeder cattle were mixed throughout the day. November feeders were able to settle above the 200-day moving average after three days of trading through that benchmark.
  • Weekly beef export sales dropped more than half from the previous week to 11,500 mt. Top beef export sale destinations for this week were Japan and South Korea, both slightly above 3,000 mt each.
  • December live cattle closed up 45c at $116.55, while November feeder cattle closed up 25c at $150.17½.
  • Today’s estimated hog and cattle slaughter are 473,000 and 116,000 respectively.