Beans Look To A Yield Increase

Corn – Another quiet day for funds, Dec may gravitate to 405 – 408 for the report tomorro

↔Yesterday was another low volume day with no signs of fund trade, they may remain on the sidelines until seeing tomorrow’s report

↔Other traders seem to be comfortable with Dec priced 405 – 408 for the report tomorrow

↔The above price level assumes no change in yield to possibly a small decline, analysts expect -0.7 bu

↔Volume yesterday in corn was again the lowest for the year showing that many traders are happy to wait for tomorrow’s report before deciding on the next move

Beans – Overnight recovery, day session traders may still be cautious about a yield increase tomorrow

↑ Overnight recovering moderately, possibly looking for new 8 AM sales this morning

↓ Day session traders are likely now expecting a small yield increase tomorrow for beans even though analysts are calling for no change, the GTE rating is strong enough to justify a yield increase

↔Recent exports have gone far to correct a severe deficit through 2024, so far it has brought exports back in line with USDA expectations but are not yet above those expectations

↔Beans appear happy with Nov at $10 or just above that level going into tomorrow’s report, that level would assume a very small yield increase tomorrow

Wheat – Trade expecting virtually nothing on tomorrow's report for wheat, exports will be the focus

↔Carryout on tomorrow's report is expected to be virtually unchanged for wheat

↔Last week did see a slowdown in exports to 340K but the 4 weeks before that showed signs of solid improvement, some recent support may be signs of trade feeling the improvement could continue

↔Funds quiet in wheat as well, it may take more fund short covering to cause more of a bounce

Cattle – BB lower (neutral), cash trades silent (positive), waiting for first cash bids today

↔Yesterday’s PM BB was choice -0.29 select -1.48 packer BE at 192.16, packer cushion $11.21

↔BB lower yesterday, packer profits are still at a strong enough level to assume higher cash this week

↔No words on cash trades yesterday which is at least a slightly positive sign, we did not see cash trade lower on a Tuesday like we saw last week, sellers might be holding out this week

↔Would certainly expect to see a cash bid today which is likely to guide futures quickly when we see it

↔Futures are still priced $2.50 under last week’s cash, so still on the slightly cautious side