Afternoon Comments 10/21


Corn: Corn futures posted an impressive rally Tuesday. Monday’s weekly USDA Crop Progress report stated the corn harvest as being just 31% complete, which apparently sparked a corn futures bounce from overnight lows. Prospects for fine late-October harvesting weather may have limited gains, but bulls were probably joined by technicians as December futures bounced from moving average support. December corn futures rebounded 7.75 cents to $3.56/bushel Tuesday afternoon, while May surged 8.0 to $3.785.

                                    Cash Prices       
                             Oct 20  
Central Illinois             3.09    
Omaha, NE                    3.05
                                

Soybeans: The soy situation proved quite supportive in Tuesday’s session. The Crop Condition report also stated the soybean harvest below expectations, which accounted for a portion of today’s CBOT bounce. Talk of lagging soybean plantings in Brazil reportedly encouraged bulls as well. Concurrent crude and palm oil rallies looked supportive of oil prices. November soybean futures jumped 20.0 cents to $9.6425/bushel at their Tuesday close, while December soyoil edged 0.06 cents to 31.76 cents/pound, and December soymeal leapt $13.5 to $342.9/ton.

                                    Cash Prices       
                             Oct 20  
Central Ill.                 9.22    
Memphis, TN                  9.94
                                

Wheat: Wheat markets followed corn and beans higher. Today’s wheat rise apparently tracked gains in the bean and corn markets, but technicians were probably buying in anticipation of a decisive breakout above pivotal 40-day moving average resistance. Conversely, having U.S. wheat shut out of a big Egyptian purchase probably limited the advance. December CBOT wheat climbed 5.75 cents to $5.1925/bushel late Tuesday action, while December KC wheat inched up 1.25 cents to $6.0225/bushel, and December MWE wheat rallied 2.25 to $5.69.

                                    Cash Prices       
                             Oct 20  
K.C. - HRW                   5.73    
STL - SRW                    4.30    
Mnpls. 14%                   7.79    
NE MT - durum                --
                                

Cattle: Cattle futures could hold early gains. Recent cash strength, rebounding equity markets and Monday afternoon beef strength boosting CME cattle futures this morning. However, fears that the market is vulnerable to a seasonal decline and short-covering apparently came into the market around midsession and sent prices sharply lower. December live cattle futures fell 0.97 cents to 167.05 cents/pound as Tuesday’s CME session ended, while April futures dipped 0.12 to 164.65. Meanwhile, November feeder cattle futures plunged 2.90 cents to 233.92 cents/pound and January feeders dove 2.82 cents to 228.25.

                                    Cash Prices       
                             Oct 20  
700-800 Steers (OK City)     --      
500-550 Steers (OK City)     --      
Fed Steers - Neb             --      
Cutout Values                        
Choice                       249.84  
Select                       235.17
                                

Hogs: Hopes for a wholesale bounce probably limited Tuesday’s hog losses. Pork cutout values crashed over 4.0 cents Monday, which partially explains the big CME losses posted yesterday. However, the pork plunge was caused by a virtual collapse in ham values. Given traditionally strong ham demand during the run-up to the holiday season, pork prices seem likely to rebound somewhat. December hog futures ended Tuesday having dropped 0.70 cents to 88.45 cents/pound, while April hogs rose 0.27 to 87.25.

                                    Cash Prices       
                             Oct 20  
National Avg. Carcass        97.14   
Sioux Fall Pigs (50-60lbs)   87.60
                                


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