After the Bell: Limited Buying and Selling Interest Preceding USDA Reports

Posted on 11/06/2018 3:24 PM

Corn: Corn futures settled ¾ cent lower in most contracts today after spending the bulk of the day session just below unchanged. Buying and selling interest were limited in the corn market today, as traders are hesitant to move prices far in either direction leading up to USDA’s Crop Production and Supply & Demand Reports Thursday.

Soybeans: Nearby soybean futures ended with losses of 1 to 1 ¾ cents. Soybean meal saw gains of 50 to 80 cents in the nearby contracts. Soybean oil posted marginal losses. The soybean market so far this week is consolidating good gains seen late last week. U.S. soybean harvest was 83% complete as of Sunday, six points behind the five-year average but is an improvement from last week when harvest lagged the norm by nine points, according to USDA. However, harvesting efforts will likely slow later this week amid rain and cooler temperatures.

Wheat: Winter wheat futures closed up 2 3/4 to 4 3/4 cents today and nearer their session highs. Spring wheat finished 1 ½ to 7 cents higher. Cool, wet weather has slowed winter wheat planting and emergence, according to USDA's crop progress reports Monday. Winter wheat planting was 84% complete as of Sunday, six points behind the five-year average, and 70% of the crop was emerged, seven points behind the average. The soggy, cool weather also led to a two-point drop in the amount of winter wheat USDA rates "good" to "excellent" to 51%.

Cotton: Cotton futures settled 42 to 144 points lower for the day, with nearby contracts leading losses. This represented a midrange close for most contracts. Much of today’s pressure on the cotton market was technical in nature, as the move below the 40-day moving average triggered followthrough sales. Some markets were able to settle well off their lows, however. The market likely saw some spillover pressure from crude oil, in addition to some skepticism about whether the more positive tone on U.S./China trade relations would continue beyond today’s elections.

Hogs: Lean hog futures ended the trading session with sharp losses, with the December contract losing its daily $3.00 limit. Limits will be expanded to $4.50 tomorrow. News JBS had reached an agreement with a Chinese e-commerce giant to supply the country with $1.5 billion worth of product over the next three years weighed heavily on the bean market today. The market also faced some followthrough selling and chart-related pressure.

Cattle: Live cattle futures settled 10 cents lower, while deferred months finished steady to 37 ½ cents lower. Feeder cattle finished mixed. After yesterday’s plunge to the downside, the cattle complex enjoyed some welcome short-covering today. This likely served as a disappointment to market bears who had hoped for confirmation of the breakout via followthrough selling today. That selling could still develop, but today’s relatively quiet day of trade was encouraging.

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