GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: Steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat are each favoring the upside this morning but have not moved much outside Friday’s ranges. Bears are garnering more of a technical edge in each market, though technical support could spur bulls to make a stand. Front-month crude oil futures are trading higher this morning at fresh highs while the U.S. dollar index is over 520 points higher.
“Oil Jumps as Shutdown of Saudi Pipeline Deepens Energy Crisis:” That’s a Bloomberg headline overnight. “Oil prices rose after Saudi Arabia closed a major crude pipeline following attacks, disrupting a key route that bypasses the Strait of Hormuz. The closure may lead to output cuts if it is prolonged, according to June Goh, senior oil market analyst at Sparta Commodities SA. A meeting between Iran and several Gulf nations on creating a temporary shipping lane through Hormuz was postponed, amid a rapid military advance by Iranian-backed Houthi militants in Yemen,” said the report. Brent crude oil futures rose as much as 3.7% to above $108 a barrel, before paring gains, while West Texas Intermediate was near $103. Saudi Arabia said late on Friday that it had halted the East-West pipeline as a precaution after attacks the previous day. There’s been no indication of when operations will resume.
President Trump said he is not worried that Chinese President Xi Jinping will cancel a highly anticipated visit later this month. “No, I’m not worried about that,” Trump told reporters as he attended the Irish Open in Doonbeg, Ireland, on Sunday, Bloomberg reported. “We have a great relationship. He wants to get along, and we want it. We’re going to get along.” Trump’s comments follow a recent report that China had warned the U.S. that it would scrap Xi’s upcoming visit if the U.S. approved new arms sales to Taiwan, a major point of contention for Beijing. Trump has said he is weighing a $14 billion arms deal with Taiwan, the self-governing democratic island, that China sees as part of its country. Xi has warned Trump in the past that there is a potential for conflict if the issue of Taiwan is mismanaged.
Senate Agriculture Committee Chair John Boozman, R-Ark., plans to hold another committee vote this week on his stalled farm bill to push farmer-friendly policies forward ahead of the midterms, Politico reports. The package stalled in August due to Democratic opposition over Supplemental Nutrition Assistance Program (SNAP) cuts and the absence of recovering Sen. Mitch McConnell, R-Ky. While Boozman hopes McConnell can return to vote, he intends to proceed regardless, the report said. Democrats are demanding a two-year delay before states must share SNAP costs. Boozman confirmed to Politico that his current proposal — a one-year delay — remains his final offer to Democrats.
CORN: December corn is trading within Friday’s range. Support comes in at Friday’s low of $5.23 1/4 while bulls are looking to overcome resistance at $5.40 then $5.44 3/4 on strength.
SOYBEANS: November soybeans are working to claw back above $13.00 resistance. Additional resistance lies at $13.10 on continued strength. Bulls are looking to hold support at $12.92 then $12.85 on a reversal back lower.
WHEAT: December SRW wheat is trying to hold 20-day moving average support at $7.29 1/2. That remains a key pivot today as bears are building a technical edge. Support comes in at $7.25 then $7.09 on persistent selling. Resistance stands at $7.38 1/2 on a push higher.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Lower.
CATTLE: Live and feeder cattle futures are expected to open with a mostly weaker tone as technical sellers take advantage of higher prices. While futures bounced last week, cash cattle trade was slow to develop, giving little fundamental support to the bounce. Futures stalled at 40-day moving average resistance as well, a key technical barrier bulls need to overcome to continue to uptrend. Today’s release of last week’s cash cattle average could be the catalyst bulls need. Choice beef slid $2.43 to $375.94 Friday, extending the recent slide.
HOGS: Lean hog futures are expected to open lower in a continuation of Friday’s selling pressure. Bulls gave up their technical edge Friday, but the waning cash market was too big of a weight to bear. The CME lean hog index is down another 85 cents to $87.94 Friday, extending the seasonal slide. Pork cutout slid $2.01 to $89.80 Friday, led by a $9.67 drop in bellies.