Afternoon Market Highlights


Highlights

· The U.S. Dollar is weaker, trading 0.279 points lower at 93.011.

· The DJIA is down 19 points at 22,849.

· Nearby November Crude Oil futures are currently trading higher by $0.32 at $51.26 per barrel.

· November RBOB Gasoline futures are currently trading $0.0168 higher at $1.6083/gallon.  

·  The USDA Supply and Demand report will be released tomorrow at 11:00 am CDT.    

Grains and Oilseeds:

Corn

Corn traded unchanged to 3½-3¾ cents lower today but trade remains range bound ahead of tomorrow’s report, seeing a narrow 3½ cent range in the December contract. The December corn contract continues to trade near contract lows but is finding strong support at $3.46.

Current spreads: Z/H 13½ ¢ carry, H/K 8¾ ¢ carry, Z/N 29¾ ¢ carry.

· U.S. cash basis bids for corn are mostly steady to higher today across many parts of the Midwest as farmer sales remain light with harvest-delaying rains keeping farmers out of their fields.

· The USDA reported export sales of 150,000 metric tons of corn sold to Mexico for delivery in the 2017/18 marketing year.  

·  Early yield reports throughout the corn Belt indicate “better than expected” yields in many areas. Traders are expecting a yield increase in tomorrow’s WASDE report of 0.2 bpa which would bring the October yield estimate to 170.1 bpa.

Oilseeds

Soybean futures traded unchanged to 1 cent higher today finding some support from export demand while bouncing off of its 10-day moving average. Trade ranges were narrow today with only a 4 cent window as traders wait for tomorrow’s WASDE report.

Current spreads: X/F 10¾ ¢ carry, X/H 20¼ ¢ carry, H/K 9½ ¢ carry, X/N 38½ ¢ carry.

· The last trade day for October soybean meal and oil is Friday the 13th.

·The USDA flashed two different export sales of soybeans this morning. The first was a sale of 264,000 metric tons of beans for delivery to China during the 2017/18 marketing year and the second was for 132,000 metric tons of beans for delivery to unknown destinations during the 2017/18 marketing year.

· Harvest continues to stall in the eastern Corn Belt as the eastern I-states received another shot of rain overnight. The southern Midwest also remains wet and farmers are forced to wait for clear weather and good drying conditions before getting back to harvesting beans.

· Tomorrow’s USDA report is expected to show a nominal increase in the expected average soybean yield. Average trade guesses come in at 50.0 bpa, a 0.1 bpa increase over the September report. Early yields from the first 36 percent of harvest indicate yields are on par with the USDA’s estimates and a small yield increase tomorrow would not come as a surprise.

Wheat

Chicago wheat traded 2¼-4¼ cents lower, Kansas City traded 2-3¼ cent lower and Minneapolis trade was -¼-2 cents higher. The Minneapolis premium over KC and Chicago is $1.85¼ -1.190¼ for December contracts and $1.80-185¾ for March contracts.

Current Spreads: Chicago Z/H 20 ¢ carry, KC Z/H 18 ¢ carry, Mpls Z/H 13½  ¢ carry, Mpls H/K 6½  ¢ carry.

· The Chicago and Kansas City wheat markets traded marginally lower again today as the market searches for fresh news while feeling the effects of poor export demand and large global stocks.

· Improving soil moisture also added pressure to the wheat markets following beneficial rains in the plains and Midwest. Winter wheat planting is behind the 5 year average pace of 58 percent, but farmers are not concerned at this point.

· The USDA reported an export sale to Mexico during the 2017/18 crop year of 104,202 metric tons of hard red winter wheat.   

 · Analysts expect the USDA to raise its forecast of 2017/18 U.S. wheat ending stocks in tomorrow’s report. Average trade estimates for U.S. ending stocks come in at 946 million vs. the September report’s 933 million.  

Livestock

The cattle markets were lower today as November cattle settled $0.225 lower at $118.575 while February cattle was down $0.275 at $122.10. Feeder cattle traded lower today, showing a $0.55 loss on November feeders at $155.60.

· First notice day for October live cattle was Monday, the last trade day is October 31st.

· Packer margins came in at $127.00/head.

· Boxes were lower today. Choice traded down $0.64 at $196.76 and Selects were down $0.77 at $189.25.

Lean Hogs saw higher trade today as the December contract traded higher by $1.025 to settle at $62.575 while the February contract traded $0.45 higher at $67.85.

· The last trade day for October hog futures and options is Friday. They will be cash settled against the 2 day average of the lean hog index.

· This morning’s carcass values were $0.42 higher at $74.13. Bellies were $1.96 higher at $94.88 with 195 loads traded.

· Pork packer margins came in at $31.20/head.