Corn futures are mostly a penny to 2 cents higher at midmorning.
· Corn futures are higher for the third straight session amid continued support from wheat futures.
· South American crop consultant Dr. Michael Cordonnier left his Brazilian corn crop peg at 125 MMT with a neutral bias. He also maintained his Argentine corn crop forecast at 48 MMT.
· World Weather Inc. maintains there is “some” concern about dry pockets in central Argentina during the coming week, but relief should occur next week to prevent a more serious bout of dryness from evolving. Sao Paulo and northern Parana will also be left out of the greater rainfall for a while leading to drier soil conditions in time.
· December corn futures are testing resistance at $4.31 3/4, while initial support lies at the 10-day moving average of $4.27 1/4.
Soybeans are unchanged to a penny lower, while soymeal futures are around $2.00 higher. Soyoil is around 15 to 20 points lower.
· Soybean futures have risen from earlier lows but continue to be limited by technical resistance.
· The Brazilian soybean crop is rated mostly in good condition and more rains are in the forecast. As a result, Cordonnier raised his Brazilian soybean crop forecast by 1 MMT to 166 MMT. He maintains a neutral to higher bias, noting the only concern is dryness starting to creep into far southern areas. Cordonnier left his Argentine soybean crop forecast at 57 MMT.
· Brazilian soy crush group Abiove projects the country’s soybean crop at 167.7 MMT, a record volume that should also catapult exports and domestic processing to record highs.
· January soybean futures continue to face resistance at the 10-day moving average of $10.09 1/4, which is backed by the 40-day, currently trading at $10.18 3/4. Initial support lies at $10.00 and is backed by $9.95 1/2.
Winter wheat futures are 7 to 8 cents higher, while spring wheat is 4 to 6 cents higher.
· Wheat futures are higher amid short-covering with support from U.S. dollar weakness.
· USDA rated the winter wheat crop 49% “good” to “excellent” and 15% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop improved 10.2 points to 330.4 while the SRW CCI rating slipped 0.2 point to 371.3. The HRW crop is now 9.5 points above year-ago, while the SRW CCI rating is 2.9 points below last year on this date. Click here for details.
· Ukrainian Agriculture Minister Taras Vysotskiy told Reuters the country’s winter wheat plantings could increase to 5 million hectares for next year’s harvest from 4.6 million for this year. That may increase production to 25 MMT from 22 MMT this year.
· December SRW futures have extended above the 10-day moving average of $5.54 1/2 but are facing further resistance at $5.59 1/4. Initial support lies at $5.45.
Live cattle are slightly to moderately higher, while feeders are moderately to sharply firmer.
· Nearby live cattle are extending recent gains with wholesale strength lending support.
· Choice boxed beef prices surged $3.94 on Monday to $307.28, while Select fell 69 cents to $275.45. The jump in Choice beef could signal prices have reached a level of value for retailers after the recent sharp drop, though the slowdown in movement on Monday to 109 loads, including 70.5 loads of Choice, suggests the uptick in price may be temporary.
· Early expectations are cash cattle will trade lower again this week.
· December live cattle have extended above the 10- and 200-day moving averages, currently trading at $184.18 and $184.44, though additional resistance stands at $185.13. Support lies at the 100-day moving average of $183.47.
Hog futures are choppy with an upside bias at midmorning.
· December hog futures are firmer in narrow trade as traders narrow the discount to the cash index.
· The CME lean hog index is down another 78 cents to $88.49 as of Nov. 15, the sixth decline in the last seven days and the biggest drop during that span.
· The pork cutout value slid a modest 4 cents on Monday to $97.07 despite declines in all cuts aside from primal loins and butts. Movement totaled 252.4 loads for the day.
· December lean hogs are trading within Monday’s range in consolidative trade between resistance at $80.52 and support at $79.57.