Corn – Overnight may be expecting more 8 AM sales, resistance seen again around 490
↑ Overnight may be expecting more 8 AM sales, recent sales have been slightly above average
↓ While sales have picked up recently they are still not strong enough to expect USDA to raise exports
on Friday’s report which is a solid reason March continues to see resistance around 490
↔ Recent improvements in exports are keeping support at/above 475, not being strong enough yet to
start a new rally keeps resistance at 490 so the recent range trade in March continues
↔ Friday’s Dec crop report is expected calm, early estimates expect a 3 mil bu decline in ending stocks
Beans – SA 1 – 5 day forecast drier, 6 – 10 solid, better support expected around 1300
↑ After the recent setback better support is expected around 1300 as seen before in late October
↑↓ The 1 – 5 day SA map is drier, the 6 – 10 day still has solid rains for almost all areas of BRA/ARG
↓ Corn/wheat/soybean meal all saw 8 AM sales yesterday but not beans, this was seen as disappointing
↔ Jan continues to work back towards fair value of 1290 (mis typed in previous morning emails), we
can expect an uptick in support at 1300 and better general support around 1290
↔ Beans also expecting a calm Dec report with early estimates looking for ending stocks down 3 mil bu
Wheat – After 4 days higher in a row a slight cooling off seen last night, first resistance at 631
↓ After 4 strong days higher the overnight trade cooled off a bit last night near first resistance at 631
↔ China bought CHI wheat when it was expected they would buy KC wheat, still supportive all wheat
markets but could cause a further narrowing of the CHI/KC spread, has gone from $1.20 to now $0.36
↔ Early estimates for Friday’s December crop report calls for no change to wheat carryout at all
Cattle – BB lower again, feeder index -2.62, showlist -6400, Feb has erased almost all gains in 2023
↔ Yesterday’s PM BB was choice -2.47 select -2.66 packer BE at 177.11, packer cushion $2.79
↓ BB continues lower, actively lower yesterday and remains the #1 issue pressuring cattle lower
↓ Feeder index yesterday -2.62 pressuring feeder futures and spilling some weight over to fat contracts
↔ A -6400 showlist is slightly supportive but likely that BB has moved low enough to offset that, even
with that showlist would expect a $1 lower cash trade this week
↓ BB continues to move lower and so do packer bids almost right in line with BB, for that reason packer
profits maintain a low $2 to $3 gross profit level which has been the case since late September
↔ Funds may be adding light selling but cattle has a true bearish fundamental setup right now