Lakefront Briefing Morning Commentary

Lakefront Briefing Morning Commentary

Corn:
Another new high overnight with Dec corn a few cents shy of next resistance at 494. Open interest up 16,500 yesterday. French conditions dropped another 2% to 38% G/E, down from 69% last year, and Rhine River levels are limiting barge tonnage. US corn drought area up to 20% vs 9% a year ago.

Soybeans:
Nov beans hit a new high overnight and open interest continues to rise on the rally. Heat creeping back into the northern Plains this weekend and spreading across the upper Midwest next week. Ukrainian vegoil producer Allseeds halting Odessa operations due to attacks. Nov nearing resistance at 1255 to 1260.

Wheat:
End of week profit taking after yesterday’s new contract highs. Maersk stopped service to Ukraine’s Chornomorsk port. HRS tour final results came in at 48 BPA, above the 5 year average of 45.8 but below USDA’s 58 BPA yield estimate. Extreme heat moving into the northern Plains this weekend.

Livestock:
Cattle on feed and semiannual inventory reports this afternoon. Cash down $30 in recent weeks with this week’s trade at 230. Boxed beef cutout at $362.87. October hogs closed on the highs of the week, lean hog index at 97.08 is the highest since mid October, pork cutout at $104.29.

Reports coming out today (CST)

Weekly Cattle Slaughter 1:00 PM
Weekly Hog Slaughter 1:00 PM
Cattle on Feed 2:00 PM
Commitment of Traders 2:30 PM