GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 2 to 4 cents higher.
Wheat: 2 to 4 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each had a rocky start to overnight trade but have since recovered, with soybeans and wheat trading higher into the break. Traders are anxiously awaiting an announcement from Trump on China trade and soybeans tomorrow. Outside markets are mixed this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is over 550 points higher.
The National Weather Service today said a strong cold front will stretch across the Midwest to southern Plains and will slowly march eastward over the next couple of days. Above average moisture is expected to provide potential for heavy rainfall across parts of the lower Mississippi Valley, Mid-South, and Lower Ohio Valley today into tonight. Some rain is forecast to stretch northward into the Great Lakes today. The potent cold front will be a dividing line between cooler-than-average temperatures to its west and warmer-than-average temperatures to its east. Unseasonably warm temperatures with highs in the 80s will be widespread today across portions of the Midwest into the Great Lakes. By Tuesday the Ohio Valley and Great Lakes should cool closer to normal behind the front. Meanwhile, below-normal temperatures (especially for highs) are likely across the Intermountain West, and the coolest anomalies of 15 to 25 degrees below normal are forecast for the central High Plains, where highs are forecast to only reach the 50s. On Tuesday the cool air should dive south a bit into the south-central Plains, with highs in the 60s. Chilly low temperatures have prompted freeze watches/warnings and frost advisories this morning scattered through the Intermountain West and north-central U.S., and freezing temperatures could remain a concern into Tuesday morning for parts of Wyoming into northwestern Colorado.
U.S. House Republican leaders have told their members to stay away from Washington while the federal government is shut down. House Majority Whip Tom Emmer said House Republicans are ready to get back to work as soon as Chuck Schumer and Democrats in the Senate reopen the government, said Bloomberg in a report. “Prospects of a deal in the Senate anytime soon appear remote, with Senator Susan Collins saying it appears they’re not getting close on reopening the government,” said Bloomberg.
Gold prices rose sharply overnight to a record high of $3,973.70 an ounce, basis December Comex futures, as looming U.S. interest rate cuts and the prospect of a prolonged U.S. federal government shutdown boosted trader and investors demand for the yellow metal. Gold prices are up around 50% this year. Gold-backed exchange-traded funds swelled again last week, with private investors contributing to the latest leg in the rally and total holdings expanding the most in more than three years last month, according to Bloomberg.
CORN: December corn bulls are looking to overcome resistance at $4.20 1/2 before tackling the 100-day moving average at $4.24 1/2. Support stands at $4.15 on a reversal lower.
SOYBEANS: November soybeans opened the overnight session lower but have since reversed higher. Resistance stands at $10.21 3/4 then the 40-day moving average at $10.25 on a push higher. Support stands at $10.17 1/2 then $10.14.
WHEAT: December SRW wheat is looking to overcome resistance at $5.16 1/2 before tackling the 20-day moving average at $5.19 1/2. Support comes in at $5.08 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly weaker tone as technical selling is expected to weigh on prices. December futures have toggled between 20-day moving average resistance and 40-day moving average support for the last six session, seeing no closes outside of that range. Cash cattle trade looks to end last week lower, breaking below $230.00. Wholesale beef ended Friday mixed with Choice cutout sinking 95 cents to $362.27 while Select climbed $1.98 to $345.38.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of Friday’s strength. Continued weakness in the CME lean hog index could weigh on prices after the open, as the index is down another 86 cents to $102.84 as of Oct. 2. Pork cutout rose 95 cents to $108.30 Friday, led by gains in bellies and picnics.