Lakefront Morning Briefing

Lakefront Morning Briefing

Corn:
Dec corn down 2 1/2 overnight after yesterday’s surge on an estimated 57,000 contracts of fund buying. USDA cut yield more than expected and new crop ending stocks dropped nearly 140 million bushels despite 1.2 million more harvested acres. Russia struck Ukraine’s largest Danube River export facility overnight. Resistance near 500, pullback support 468 to 472.

Soybeans:
Nov beans quiet after yesterday’s double digit rally on what was essentially a neutral USDA report. Harvested acres rose 1.4 million but yields were cut slightly more than expected and stocks to use hit a 4 year low. The $12.00 area should be significant resistance unless China demand picks up. Pro Farmer tour starts Monday.

Wheat:
Dec Chicago wheat up 1 1/4 as Russia hit Ukraine’s largest Danube grain export facility overnight in apparent retaliation for the Novorossiysk attack. Germany’s farm group cut their wheat harvest estimate to 20.55 million tonnes from 23.15 last year. Stochastics has turned higher and next resistance is 667 on Sep Chicago. Bulls have the edge.

Livestock:
Oct live cattle tested the month’s low at 222.75 after USDA lowered 2026 beef production and raised imports. Cash in the north at 232, down from last week. Below 222.75 opens a retest of the July low near 218. Oct hogs holding a stochastics buy signal: above 84.45 targets 85.40. Lean hog index 95.94, pork cutout $100.41.

Energy:
US ethanol production was up 0.9% week over week and stocks up 1.1%, supportive for corn demand.

Reports Coming Out Today

Export Sales 7:30 AM (USDA has not released this as of 8:44am)
Natural Gas Storage 9:30 AM