Corn is 2 to 3 cents higher
- Delayed November crop production and supply and demand estimates from USDA are due at 11 a.m. CT on Friday. See: 4 key things to know ahead of USDA Crop Production and WASDE reports
- A Reuters poll found analysts, on average, expect USDA on Friday to estimate a yield of 184.0 bu. per acre for corn and 53.1 bu. per acre for beans. Corn yields ranged from 181.7 to 186.0 bu. per acre while bean yields ranged from 51.7 to 54.0 bu. per acre. USDA in September pegged the national average corn yield at 186.7 bushels an acre, with soybeans at 53.5 bushels an acre.
- Brazil’s Conab Thursday morning projected the country would produce 139 million metric tons of corn, down 1.6% from the previous year, Reuters reported.
- The end of the government shutdown late Wednesday cleared the way for USDA to begin releasing a backlog of data. Weekly export sales data figures were released ahead of the opening bell, but for the week ended Sept. 25. USDA laid out a schedule for catching up with weekly sales reports, while daily sales from Oct. 1 through Nov. 13 will be posted at 11 a.m. CT, the agency said.
- For the week ended Sept. 25, corn sales totaled 1.395 MMT, down 27% from the previous week but well above average.
Soybeans are up 10 to 13 cents
- Apparent pre-report short covering saw January beans break through resistance at last week’s high , hitting the highest in 17 months, with the next layer of resistance seen at $11.50. Support stands at $11.35 then $11.21 on profit-taking.
- Conab put Brazil’s incoming soybean crop at a record 177.6 million metric tons, with exports seen rising 5.1% to 112.1 million metric tons.
- Soybean sales totaled 870,500 MT in the week end Sept. 25, up 20% from the previous week but well below average.
SRW wheat futures are ½ to 1 cent higher
- Wheat has traded sideways after giving back early November gains. Last week’s high at $5.55 is important near-term resistance.
- Wheat sales totaled 315,900 MT in the week ended Sept. 25, down 41% from the previous week and below average.
Live cattle and feeders are facing persistent selling pressure.
- Both fats and feeders are chipping away at Monday’s gains.
- Wholesale beef saw losses Wednesday with choice cutout falling $4.77 to $374.45 while select sunk 14 cents to $359.94.
Hog futures are trading around $2.00 lower at midmorning.
- Lean hogs are facing sustained selling pressure and are working lower for the third consecutive session, now having negated all the strength seen earlier in the week.
- Pork cutout continues to undergo persistent weakness, having fallen another $1.24 to $96.14. Weakness in ribs and loins led cutout lower on Wednesday.
- The CME lean hog index is down another 4 cents at $89.13. The index has shown some signs of relative strength recently, which has been supportive for futures.
- December lean hogs continue to fall under selling pressure, erasing Monday’s big gain. Prices made a fresh for-the-move low today but have seen some psychological support at $79.00 though additional support lies at $78.40. Resistance stands at the psychological $80.00 mark on a bounce.