Corn – Overnight takes out 2 month downtrend and 20 day MA, exports expected strong today
↑ Exports are expected strong today around 1100K, still well over the 600K average for this time of year
↑ Ethanol was strong again yesterday coming in at 1057K making it the 5th strong week in a row
↑ Overnight moved above the 2 month downtrend line, weekly high and 20 day moving average, taking
out first minor chart resistance levels, next larger importance level is the 38% retracement at 455
↔ We would not make the claim funds were involved in the overnight buying, we have yet to ever see
signs of fund trading in overnight markets
Beans – Following the support seen in all grains overnight, exports expected slightly poor around 400K
↑ Beans followed support seen across all grains last night, did not take out any chart resistance levels
↔ Exports are expected slightly poor at 400K although the last 2 weeks have been 56K and 161K
↔ Palm oil jumped higher yesterday, not yet at levels to offer spill over influence but something to
watch in case it does rally to that point
↑ The USDA will adjust their estimate on the BRA crop size on Friday but it is likely most traders are far
more focused on the upcoming adjustment that CONAB will make in the next few days
Wheat – Exports expected solid at 400K, overseas wheat posted a solid bounce last night
↔ Exports are expected to come in at a moderate pace today around 400K
↑ Overseas wheat markets put in a salad bounce last night, not enough to break the recent downtrend
but enough to offer some spillover support for a change
↑ The overnight grain support looks tied to a macro grain story as all US grain markets and most
overseas grain markets saw support, at the time of this writing we are unable to find a headline
Cattle – Packers maintained a 0.50 lower cash bid, still no reports of many takers on that bid
↔ Yesterday’s PM BB was choice +0.12 Select +0.22 packer BE at 190.50, packer cushion $7.73
↔ Cash bids continue at $0.50 lower yesterday, so far no signs of sellers taking that bid on any size
↔ BB has recently turned sideways/choppy but has yet to show signs of turning lower
↑ Packer profits are still above the $7 level which we have seen in the past result in stronger cash trade
↔ We'll see if packer bids improve today, it appears they are still holding off trying to get cash bought
slightly lower, we will see if sellers let go of cash at that level or continue holding out