Afternoon Market Highlights


Highlights

· The U.S. Dollar is weaker, trading 0.010 points lower at 93.005.

· The DJIA is down 17 points at 22,855.

· Nearby November Crude Oil futures are currently trading lower by $0.71 at $50.59 per barrel.

· November RBOB Gasoline futures are currently trading $0.0248 lower at $1.5844/gallon.  

·  The USDA Supply and Demand report was released today, sparking a substantial rally in the soybean market.    

Grains and Oilseeds:

Corn

Corn traded unchanged to 2¾-3½ cents higher today, bouncing from contract lows in the December contract month following the release of the WASDE report. Most of the strength in corn can be attributed to the rally in the soybean market.

Current spreads: Z/H 13¾ ¢ carry, H/K 8¾ ¢ carry, Z/N 30 ¢ carry.

· The December contract made a life-of-contract low just before the release of the WASDE report at $3.42½.

·Today’s USDA WASDE report came in with an updated yield estimate of 171.8 bpa. This was an increase of 1.9 bpa from the September report.

· Total corn production came in at 14.280 billion bushels which was an increase from the September reported production of 14.184 billion bushels. U.S. ending stocks were revised higher, coming in at 2.340 billion bushels. Planted area was lower by 500,000 acres.

· The USDA reported export sales of 120,000 metric tons of corn sold to Mexico for delivery in the 2017/18 marketing year.  

· U.S. ethanol production dropped by 43,000 barrels per day in the latest EIA report. This was the largest decrease in production since June of 2016. Ethanol stocks decreased by 22,000 barrels to 21.523 million barrels.

Oilseeds

Soybean futures traded 27¼-27¾ cents higher today rallying from a lower bean yield number in today’s WASDE report. The rally in beans sparked a large amount of cash bean selling from producers today.

Current spreads: X/F 10¼ ¢ carry, X/H 19 ¾ ¢ carry, H/K 9¼ ¢ carry, X/N 37¼ ¢ carry.

· Today’s USDA WASDE report came in with an updated soybean yield estimate of 49.5 bpa. This was a decrease of 0.4 bpa from the September report.

· Total  U.S. soybean production came in at 4.431 billion bushels which was unchanged from the September report. U.S. ending stocks were revised lower, coming in at 0.430 billion bushels. Planted acres were higher by 700,000 acres.

· 2017/18 world carryout came in at 96.1 million metric tons which was lowered by 1.43 million metric tons from the September WASDE report.

· Soymeal and soy oil contracts were stronger today, finding strength from the soybean rally despite unchanged crush estimates. Soybean oil’s gains were held back by the large increases in soybean meal and an unchanged statistic for biodiesel demand.

· Soybean harvest is going strong in the Dakotas, parts of Minnesota and Iowa. Farm ground remains wet in most of the eastern Corn Belt and much of the south central Midwest.

Wheat

Chicago wheat traded 2½-3¼ cents lower, Kansas City traded 2-2¼ cents lower and Minneapolis trade was 7-7¾ cents lower. The Minneapolis premium over KC and Chicago is $1.81¼ -1.85 for December contracts and $1.76-1.81 for March contracts.

Current Spreads: Chicago Z/H 19 ¢ carry, KC Z/H 18¼ ¢ carry, Mpls Z/H 13¾ ¢ carry, Mpls H/K 6½  ¢ carry.

· The wheat markets traded lower today following the release of the somewhat bearish (but expected) WASDE numbers that confirmed large domestic and world wheat stocks.

· Planted acres for U.S. all-wheat came in 300,000 acres higher at 46.0 million acres. The U.S. carryout for the 2017/18 crop year is estimated at 0.960 billion bushels, a 270,000 bushel increase from the September report.

· The USDA pegged the 2017/18 world carryout at 268.1 million metric tons, a near 5 million metric ton increase from the September WASDE report.

· European soft wheat exports for the current marketing year that began on July 1st came in at 5.0 million metric tons by October 10th. This was a 35% reduction from the 7.7 million metric tons exported one year ago.

 · Morocco will cut its soft wheat import duty to 30 percent from 135 percent previously.   

Livestock

The cattle markets were lower today as December cattle settled $1.00 lower at $117.525 while February cattle was down $0.875 at $121.30. Feeder cattle traded lower today, showing a $1.075 loss on November feeders at $154.60.

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

· Packer margins came in at $116.25/head.

· Boxes were higher today. Choice traded up $0.63 at $196.95 and Selects were up $0.51 at $189.27.

Lean Hogs saw lower trade today as the December contract traded lower by $0.75 to settle at $61.75 while the February contract traded $0.875 lower at $66.90.

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

· This morning’s carcass values were $0.47 higher at $74.14. Bellies were $0.63 higher at $95.23 with 149 loads traded.

· Pork packer margins came in at $29.40/head.