Corn:
Dec corn up 1/2 after another new contract high overnight, its 6th in 7 sessions, with the rally now $0.86 off the August 11 low. Conditions held unchanged at 57% G/E vs 69% a year ago, and managed money’s net long is estimated just over 405,000 vs the record 454,000. Fundamental and technical support points to the 550 to 560 band where longs should take some profits: close in support 527, strong pullback support 510 to 517.
Soybeans:
Nov beans up 12 1/4 at another new contract high as bean oil gapped higher on the EPA statement that 100% of exempted biofuel volumes will be reallocated, keeping total volumes elevated. Conditions fell 2% to 58% G/E vs 65% a year ago and shower chances are limited over the next week. Nov is testing the 1300 to 1305 resistance zone: a close above 1310 strengthens the technical picture, pullback support 1260 to 1270.
Wheat:
Dec Chicago wheat jumped nearly $0.20 overnight to a new 3 1/2 year high after Russia rejected Turkey’s grain export corridor proposal, though most of the gain has faded this morning. A heavy missile barrage hit Kyiv and the Odessa grain terminals were struck again, with the Danube vessel queue at 80 ships. Dec Chicago support near 752, next resistance 799.
Livestock:
Oct live cattle could open stronger after the EU announced it will suspend meat imports from Brazil starting Wednesday: Brazil was the EU’s 2nd largest beef supplier, which could shift demand to US product. Key support at last week’s low of 211.30, resistance 215.10 then 216.40, with the 57,000 contract fund long still the bearish risk. Oct hogs moved above the August range, suggesting an interim low: a pullback below 82.00 is a buying opportunity, next resistance 85.65.
Energy:
The EPA’s biofuel reallocation statement is a demand positive for bean oil and renewable diesel feedstocks, and strong overnight gains in crude added to the move: firm crude also supports ethanol margins and corn grind economics.
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