Lakefront Morning Briefing

Lakefront Morning Briefing

Corn:
Dec corn up 2 3/4 overnight at a 3 month high after Pro Farmer Day 1 found South Dakota yields at 149.1 BPA, well below last year’s 174.2 and the 3 year average of 162.7. Conditions fell 1% to 60% G/E and open interest jumped over 15,000 on fund buying of more than 20,000. Dec should challenge this year’s highs at 506 1/2: pullbacks to 480 or below should find support.

Soybeans:
Nov beans up 8 1/2 extending yesterday’s breakout as Day 1 pod counts came in well below last year: South Dakota at 945.98 vs 1188.5. NOPA crush at 216.65 million bushels missed the 221.5 estimate but bean oil stocks fell to a 9 month low. A test of the July highs just under 1260 is possible if the tour keeps finding disappointing counts.

Wheat:
Sep Chicago wheat up 4 1/4 after making higher highs and higher lows for 5 straight sessions. Russia attacked fuel tanks at the Odessa port complex overnight and HRS conditions rose 1% to 52% G/E with harvest ahead of pace at 41% complete. A close over 680 retracement resistance opens the door to the July highs at 711.

Livestock:
Oct live cattle closed lower a 5th straight session after a morning rally faded, though the cutout jumped $4.27 to $379.57. Close in support at 217.75, key support at Friday’s low of 215.22. Oct hogs remain in a downtrend with open interest up 3,000 on the break: support near 80.00, resistance 83.55, and a close below 80.00 escalates the weakness.

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