GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 5 to 8 cents higher.
Wheat: Winter wheat 2 to 4 cents lower; HRS 1 to 3 cents higher.
GENERAL COMMENTS: Soybeans saw relative strength overnight as prices bounced off technical support. Corn continues to trade sideways and traded in a tight range, while wheat saw relative weakness. Outside markets are supportive this morning as front-month crude oil futures are up on corrective buying while the U.S. dollar index is around 125 points lower.
China’s exports unexpectedly contracted in October as global demand failed to offset the deepening slump in shipments to the U.S., “dealing a blow to an economy already slowing amid sluggish consumer spending and investment at home,” said a Bloomberg report. China’s exports fell for the first time in eight months, dropping 1.1% from a year earlier, according to official data released Friday. Shipments to all nations except the U.S. rose 3.1%, not enough to compensate for the more than 25% decline to the U.S. Chinese exports have been resilient until now, as other destinations made up for drops in shipments across the Pacific Ocean. Sales abroad had grown every month since February, when activity slowed because of the Lunar New Year holiday. However, October marked a break in the trend of growth driven by the pursuit of new markets among Chinese companies. A range of trade indicators started to cool off from the record numbers seen in earlier months, with Shanghai port processing the fewest containers since April. The decline in overall exports in October came as a surprise to almost all forecasters, with the median estimate of those polled by Bloomberg at 2.9%.
The Federal Aviation Administration‘s order to scale back U.S. flights nationwide because of the record-long government shutdown has taken effect. The 40 airports selected by the FAA span more than two dozen states and include hubs such as Atlanta, Dallas, Denver, Los Angeles and Charlotte, North Carolina, according to the order. In some metropolitan areas, including New York, Houston, Chicago and Washington, multiple airports will be impacted, while the ripple effects could reach smaller airports as well. Airlines scrambled to adjust their schedules and began canceling flights Thursday in anticipation of the FAA’s official order, while travelers with plans for the weekend and beyond waited nervously to learn if their flights would take off as scheduled. More than 810 flights have been called off nationwide, according to FlightAware. Delta Air Lines said it would scratch roughly 170 flights Friday, and American Airlines planned to cut 220 a day through Monday, according to the Associated Press.
A U.S. judge ordered the Trump administration to fully cover the cost of food-aid benefits for more than 42 million eligible Americans this month, rejecting an administration plan to only partially fund the program. USDA must tap alternative reserve funds to send states the $8.5 billion to $9 billion needed this month for the Supplemental Nutrition Assistance Program (SNAP). The judge said the administration must make all of the funds available to states immediately, finding that officials had failed to comply with his earlier order and that people will go hungry if the funds are not made available.
CORN: December corn found support at $4.27 1/2, the 20-day moving average, overnight. A break below that mark targets support at $4.25. Resistance comes in at $4.30 then the 200-day moving average at $4.32 1/2 on a bounce.
SOYBEANS: January soybean futures bounced off 10-day moving average support at $11.06, which will remain key technical support. Additional strength eyes resistance at the psychological $10.25 mark.
WHEAT: December SRW saw continued selling pressure overnight. Bulls are seeking to maintain prices above support at $5.26 1/2 on persistent selling. Resistance stands at $5.35 1/2 then $5.40 on resurgent strength.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone supported by profit-taking and big discounts to the cash market. While futures have faced sustained selling over the past week, the cash cattle market has shown just modest losses thus far, with cash trade averaging $228.98 so far this week. Wholesale beef ended Thursday mixed with choice cutout down 29 cents to $377.97 while select rose 51 cents to $360.76.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure though profit-taking could limit the downside as prices are in the lower end of the ongoing descending pattern on the daily bar chart. The CME lean hog index is down another 26 cents to $90.60 as of Nov. 5, extending the seasonal slide. Pork cutout slid another 36 cents to $97.18 Thursday, led by losses in ribs.