GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 3 to 5 cents higher.
Wheat: 1 to 3 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat saw strength in the latter portion of the overnight session and went into the break trading higher. Soybeans led strength and are once again challenging key technical resistance. Outside markets are mixed this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is around 200 points higher.
The National Weather Service today reports colder and drier weather along with gusty winds will expand from the Midwest and Ohio Valley into the Mid-Atlantic states as a high-pressure ridge builds in from the Northern Plains. Frost advisories are in place today from western Nebraska, most of Iowa and Illinois, and into southern Indiana. Unsettled weather is expected to continue from the Great Lakes to the Northeast for the next couple of days. More chilly and showery weather is expected to continue through Thursday across the Great Lakes before a slow drying trend sets in Thursday night.
Gold and silver prices overnight extended losses after both metals on Tuesday suffered major losses and saw their worst routs in many years, on concerns the rallies had run too far, too fast. Gold futures prices at one point Tuesday were down over $250 an ounce, while silver saw prices down over $3.50 an ounce at one point. Grain traders took note of the steep downdrafts in the metals’ prices Tuesday, with grain futures losing their early modest price gains when the selling pressure in gold and silver markets accelerated in morning trading. The general marketplace at mid-week will continue to pay closer attention to gold and silver markets, as more extreme volatility could cause concerns about market-making efficiency and even market dislocations—which if occur could spill over into selling pressure in other commodity futures markets, due to the uncertainty of the situation.
The US government shutdown, now in its 22nd day, has become the second-longest in history as the stalemate between the two parties over expiring health-care subsidies persists. U.S. Senate Democratic leaders have asked to meet with President Trump before his Asia trip later this week, but Trump said he would only talk to them after the shutdown ends. The shutdown’s economic disruption will deepen as civilian federal workers are set to miss their first full paychecks on Friday. Bloomberg reported a Tuesday meeting at the White House between Trump and Senate Republicans appeared to only strengthen the GOP resolve to refuse to negotiate with Democrats, who have demanded as their price for reopening the government that Congress provide relief to Americans whose health-care premiums will rise in January.
CORN: December corn recovered some of Tuesday’s loss overnight. Key resistance persists at $4.23 1/4, while bulls are seeking to hold prices above strong support at $4.19 1/2.
SOYBEANS: November soybeans saw resurgent strength overnight. The 200-day moving average has limited gains the past couple sessions and will remain resistance at $10.34. Additional strength targets $10.40. Support comes in at $10.25 on a turn lower.
WHEAT: December SRW wheat traded on either side of unchanged overnight. Bulls are eyeing resistance at $5.03 1/4 before tackling the 20-day moving average at $5.07 1/4. Support comes in at $5.00 on a turn lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength. Bulls are looking to build on gains seen earlier this week. Cash cattle trade remains light to start the week with very little trade taking place thus far this week. Wholesale beef ended Tuesday mixed as choice cutout climbed another $2.75 to $371.93 while select sunk 89 cents to $352.57.
HOGS: Lean hog futures are expected to open with a mostly weaker tone as technical resistance weighs on prices, though additional short-covering could limit losses after the open. December lean hogs tested 100-day moving average resistance on Tuesday before a resurgence of selling pressure. The CME lean hog index is down another 60 cents to $94.98 as of Oct. 20. Pork cutout slid $1.49 to $100.59 Tuesday as all cuts except bellies posted losses on the day.