GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 2 to 4 cents higher.
Wheat: Steady to 2 cents higher.
GENERAL COMMENTS: Soybeans continue to lead strength, which will be difficult to continue without participation from corn and wheat in the next couple days. Much of the marketplaces attention has been on the cattle market, which has garnered a lot of headlines the past couple of days. Outside markets are mixed this morning as front-month crude oil futures are solidly higher following fresh sanctions on Russian oil manufacturers, while the U.S. dollar index is around 100 points higher.
USDA issued a press release Tuesday afternoon, announcing “a suite of actions to strengthen the American beef industry, reinforcing and prioritizing the American rancher’s critical role in the national security of the United States. Since 2017, the United States has lost over 17% of family farms, more than 100,000 operations over the last decade. The national herd is at a 75-year low while consumer demand for beef has grown 9% over the past decade. Because increasing the size of the domestic herd takes time, the U.S. Department of Agriculture (USDA) is investing now to make these markets less volatile for ranchers over the long term and more affordable for consumers…. Today, USDA will immediately expedite deregulatory reforms, boost processing capacity, including getting more locally raised beef into schools, and working across the government to fix longstanding common-sense barriers for ranchers like outdated grazing restrictions,” said the USDA press release. Click here for details of the plan.
The White House is looking to buy four times its typical quota of Argentine beef in an effort to lower U.S. consumer beef prices — a move that risks alienating longtime farm-state allies of President Trump, according to people familiar with the talks and reported by Politico. Trump administration officials have told congressional Republicans and agriculture industry representatives that they’re eyeing a purchase of 80,000 metric tons of Argentine beef, though that number is not final and talks are ongoing, according to the four people and one senior administration official, who were all granted anonymity to discuss the matter, said Politico.
China said Vice Premier He Lifeng plans to meet with U.S. officials in Kuala Lumpur from Oct. 24 to 27 for the next round of trade talks, said a Bloomberg report. The meeting will take place to “discuss important issues” in the bilateral trade ties, according to the Commerce Ministry. A trade truce that’s set to run out on Nov. 10 is at stake unless extended, amid recent escalatory measures imposed by the U.S. and China against one another. President Trump on Wednesday said he was confident of striking a trade deal with his Chinese counterpart when they meet in South Korea next week, including an agreement on agricultural purchases. Trump told reporters in the Oval Office that he would speak with Chinese President Xi Jinping on Russian oil, resuming soybean purchases and rare earths exports. “We’ll make a deal on, I think, everything,” Trump said.
CORN: December corn struggled to maintain early overnight bullish momentum. Resistance stands at the overnight high of $4.25 1/2. Support comes in at $4.20 on a push lower.
SOYBEANS: November soybeans are extending above the 200-day moving average, which now lies as key support at $10.33 3/4. Resistance stands at $10.40 on extended strength, while support stands at $10.25 on an extended move lower.
WHEAT: December SRW wheat saw action on either side of unchanged overnight. Resistance stands at $5.07 on a push higher while bulls are seeking to maintain prices above support at $5.00.
LIVESTOCK CALLS
CATTLE: Lower.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open lower in a continuation of yesterday’s selling pressure. The market has been driven by headlines and despite solidly bullish cash fundamentals, the administrations attempt to lower consumer beef prices has led to a slew of bearish headlines. Cash cattle trade remains light to start the week with very little trade taking place. Wholesale beef ended Wednesday mixed as choice cutout slid $1.28 to $370.65 while select climbed $1.04 to $353.61.
HOGS: Lean hog futures are expected to open with a mostly weaker tone on a continuation of recent selling pressure, though oversold conditions could limit the downside after the open. Futures are trading well below the cash market which could limit further selling as well. The CME lean hog index is down another 80 cents to $94.18 as of Oct. 21. Pork cutout fell 84 cents to $99.75 Wednesday, inching below the psychological $100.00 mark. A $9.29 plunge in ribs led cutout lower.