GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 2 to 4 cents lower.
Wheat: 2 to 4 cents higher.
GENERAL COMMENTS: Soybeans hit a fresh for-the-move low overnight before finding some corrective strength. China purchasing another handful of cargoes could provide further strength to beans. Corn and wheat saw relative strength, trading on the positive side of unchanged, but still in the recent sideways range. Front-month crude oil futures are trading near unchanged this morning but nearer recent highs while the U.S. dollar index is around 444 points lower despite sharply higher producer inflation.
USDA announced daily sales of 330,000 MT of soybeans for delivery to China and sales of 283,450 MT of soybeans for delivery to unknown destinations for delivery during the 2026-27 marketing year.
Producer price inflation soared 1.3% month-over-month in September, the sharpest increase since the Russian invasion of Ukraine in March of 2022 and the second highest increase on record. Producer price inflation was sharply above market expectations of 0.5%. Energy price increases led producer inflation higher. Year-over-year, PPI rose 6.3%, the most since December of 2022. Core PPI, which removes food and energy, rose 0.7%. Year-over-year, core PPI rose 5.0%, up from an upwardly revised 4.8% in August, the most since January 2023. Core PPI rising sharply despite energy costs excluded shows the ripple effect of higher energy costs to other facets of the economy. The Fed is being tasked with handling the most rampant inflation in years.
Ukrainian President Volodymyr Zelensky ended a three-day pause on attacks on Russian oil refineries in an escalating confrontation with U.S. President Donald Trump over restrictions on U.S. intelligence sharing, Bloomberg reported. The report said that hours after Zelensky announced the move, normal service on Starshield internet terminals used by Ukraine’s military appeared to resume. Moscow had continued attacking Ukrainian energy infrastructure and civilian targets over the last few days, despite Trump’s Sunday declaration that Russia and Ukraine had agreed to a truce on strikes on energy targets. The moves come after Trump last week announced a controversial deal to ease sanctions on Russian oil and diesel exports in a bid to ease soaring fuel costs ahead of next month’s midterm elections, though analysts have questioned whether the amounts will have a significant impact.
Heavy rain and widely scattered severe storms are expected over portions of the central and southern Plains into the Ohio Valley, the National Weather Service said early Thursday.. Unseasonable warmth will continue for a few more days across the Midwest, Southeast, and Mid-Atlantic where several daily record highs could fall. The forecast said that as the surface low over the southern High Plains progresses northeastward toward the Great Lakes, moisture will continue to stream northward from the Gulf, which will support showers and thunderstorms along the boundary. Strong low-level moisture transport ahead of the advancing cold front will support repeated round of showers and thunderstorms, with locally high rainfall rates.
CORN: December corn futures continue to consolidate. Support comes in at the report driven low at $4.70 1/4 on a push lower. Resistance stands at $4.84 1/2 on strength.
SOYBEANS: November soybeans hit a fresh for-the-move low overnight. Prices found some strength from that mark, which is tentative support at $12.67 3/4. Bulls seek to overcome resistance at $12.80 1/2 on strength.
WHEAT: December SRW wheat is finding some strength above the 200-day moving average. Resistance stands at $6.80 1/4 on continued strength. Bulls are looking to hold support at the aforementioned mark at $6.61 1/2.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures are expected to open with a mostly firmer tone. Gains have stalled following Friday’s technical breakout but December futures are nearing technical support, which could limit further selling. Cash cattle trade has been slow to initiate this week, but choice beef is showing signs of strength, which could encourage packers to raise bids.
HOGS: Lean hog futures are expected to open with a mostly firmer tone. Futures hit a fresh contract low on Wednesday but are in the lower end of the ongoing trading range. The CME lean hog index is down another 19 cents to $75.75 as of Oct. 13, a smaller decline than recent days, which could reignite corrective strength. Pork cutout slid another $1.23 to $79.45, extending the recent slide.