Corn is 1 to 2 cents higher.
- Corn futures erased some early weakness but continue to see sideways trade ahead of Friday’s USDA Crop Production and supply/demand reports.
- A survey of analysts by Bloomberg predicted USDA would lower its average corn yield estimate to 184 bushels an acre from 186.7 bushels an acre in September, bringing its production estimate down to 16.566 billion bushels from 16.814 billion.
- Bulls are looking to overcome resistance at $4.35 in the December contract to reestablish bullish momentum, while support stands near the 20-day moving average at $4.28 1/2 on weakness.
Soybeans are trading narrowly on either side of unchanged.
- Anxiety over a lack of any sign of follow-through purchases of U.S. soybeans following the booking of cargoes around the Oct. 30 meeting of President Donald Trump and Chinese leader Xi Jinping is seen keeping a lid on futures. “The pause is fueling uncertainty over whether the biggest consumer of American soybeans will import as much as U.S. President Donald Trump’s administration claims to expect,” reports Bloomberg.
- Analysts surveyed by Bloomberg, on average, pegged the soybean yield at 53.1 bushels an acre, down from USDA’s 53.5 bushel an acre estimate in September. Production is seen at 4.271 billion bushels, down from the September estimate of 4.301 million bushels.
- Resistance stands at $11.30 then $11.37 on a push higher, while support stands at $11.16 1/4, the 10-day moving average, on a push lower.
SRW wheat futures are a ¼-cent to ½ cent lower, HRW futures are up ½-cent to 1 ½ cents.
- Wheat futures came off session lows, after December SRW tested initial support just above $5.27. A lack of fresh news is leaving the market to struggle.
- Key resistance for December SRW persists at the 100-day moving average at $5.35 1/2 while further support is seen at $5.24 1/2 on any renewed selling pressure.
Live cattle are slightly lower, while feeder cattle have turned up modestly.
- Live- cattle futures were off lows after seeing renewed technical selling after a strong bounce last week from deeply oversold conditions, which have bulls looking for confirmation near-term lows may be in. Feeder-cattle futures moved to the upside.
- The next upside price objective for the live cattle bulls is to close December futures above resistance at $235.00. The next downside technical objective for the bears is closing prices below solid technical support at last week’s low of $219.075.
Hog futures are modestly lower
- Lean hog futures declined a mixed performance on Tuesday. The December contract continues to trade within the range set by a sharp Friday rebound off a multi-month low that saw it settle at its highest since Oct. 21. Oversold conditions and prospects for a seasonal recovery ahead of the holidays have given bulls hope that a near-term bottom may be in place.
- Cash weakness continues to plague the market, however. The CME lean hog index fell 24 cents to $89.17 as of Nov. 10. Pork cutout slid $2.84 to $97.38 Tuesday, led by losses in bellies and butts.
- The December contract has violated first support at $82.00, with the next layer seen at $81.00 Resistance stands at Tuesday’s high of $83.25 and then at $84.00. The objective for bulls is a close above solid resistance at $85.00.
- The next upside price objective for the hog bulls is to close December futures prices above solid chart resistance at $85.00. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of $78.80.