GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 5 to 7 cents lower.
Wheat: Winter wheat 5 to 7 cents lower; HRS 1 to 3 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each saw followthrough selling pressure overnight. Corn is trading below key technical support and looks to be breaking down on the daily bar chart. Outside markets are mixed this morning as front-month crude oil futures and the U.S. dollar index are modestly lower. The dollar underwent weakness recently as traders apparently anticipated a shutdown of the U.S. government.
A midnight U.S. government funding deadline passed with no agreement among Congress members, triggering the government’s first shutdown in nearly seven years and shuttering the government, aside from essential duties. The shutdown could be prolonged due to a stalemate over health care subsidies, with the White House’s budget office ordering agencies to begin executing their plans for a funding lapse. The shutdown disrupts the jobs of hundreds of thousands of Americans, upending many public services and with potential economic effects, including a potential spike in the unemployment rate and delays in key economic data, including this Friday’s Labor Department employment situation report for September.
The U.S. government shutdown and other geopolitical concerns have pushed the price of gold to a new all-time high above $3,900.00 overnight. The yellow metal is now in easy striking distance of $4,000.00 an ounce. Gold has soared more than 48% this year, putting it on track for the biggest annual gain since 1979. Silver prices overnight scored a 14-year high near $48.00 an ounce and are closing in on the all-time record high of just above $50.00, hit in 1980.
Republican lawmakers said China won’t begin purchasing U.S. agricultural products anytime soon after a briefing from David Perdue, the U.S. ambassador to China. “We recognize that China has intentionally not bought farm goods. We don’t expect them to change that. That’s part of the long-term stuff,” Senator Mike Rounds, a South Dakota Republican, said after the briefing Tuesday and as reported by Bloomberg. China has yet to book a single shipment of U.S. soybeans this new marketing year. Rounds said China has intentionally not bought U.S. farm goods and is not expected to change that. The U.S. and China are in a trade détente until November. President Trump expects to meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in late October to discuss trade. The Chinese are “using farmers as leverage in this negotiation,” said Senator John Hoeven, a North Dakota Republican. “We have to make sure we keep our farmers in the game. We have to take steps so that (China) can’t exploit any weaknesses.”
CORN: December corn saw continued selling overnight. Resistance comes in at $4.12 1/4 then $4.06 1/2 on persistent selling. Resistance stands at $4.17 on a bounce.
SOYBEANS: November soybeans broke below $10.00 overnight. Persistent selling finds support at $9.89 1/4. Resistance stands at $10.00 then $10.05.
WHEAT: December SRW wheat made a fresh contract low overnight. Bulls are seeking to hold support at the psychological $5.00 mark. Resistance stands at $5.10 on a push higher.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firmer tone in a continuation of yesterday’s strength. Futures remain supported by the 40-day moving average in fats while feeders have shown relative strength recently. Wholesale beef ended Tuesday mixed with Choice cutout climbing 35 cents to $371.03 while Select sunk $1.64 to $347.25.
HOGS: Lean hog futures are expected to open higher amid technical buying. Nearby lean hog have sustained persistent profit-taking the past few days, which has pushed prices to technical support. The CME lean hog index is down another nickel to $104.73 as of Sept. 29. Pork cutout ended Tuesday $1.88 lower to $110.34 as all cuts but ribs saw losses on the day, though movement was firm at 309.9 loads.