|Hogs: Afternoon Comments (Tuesday, October 25, 2016 19:45:07)
Lean hog futures ended high-range with gains of 70 cents to $1.67 3/4. Early support came on spillover from strength in the cattle market. Impressively, as cattle faded, hog futures held up well, thanks to focus turning on narrowing the sharp discount nearby futures hold to the cash index. The cash hog market was mostly steady across the Midwest today despite the fact the market is still working through the backlog in the Southeast created by Hurricane Matthew.
Week-to-date slaughter is running 4,000 head above last week's large total and is up 23,000 head from year-ago. This raises concern about demand keeping up with backlogged supplies and so far this week, pork movement hasn't impressed.
|Soybeans: Afternoon Comments (Tuesday, October 25, 2016 19:47:20)
Soybean futures closed 1 1/4 cents lower in the lead November contract to 2 cents higher in the November 2017 contract. Prices tended to close midrange. Soybean futures traded relatively narrowly on largely technical trade. Prices were under pressure in the overnight session on the firmer U.S. dollar and widening basis at country points. But traders saw the weakness as a buying opportunity as USDA announced this morning a 516,000 MT daily soybean sale to China for 2016-17 delivery. That continued buying along with yesterday's impressive export inspections tally lifted prices. The seesaw trade continued as the dollar strengthened during the morning session only to weaken in the late session and lift soybean prices to an unchanged to positive close in all but the lead November contract.
|Corn: Afternoon Comments (Tuesday, October 25, 2016 19:46:42)
Corn futures saw two-sided trade today before ending in positive territory with gains around a penny. Price action today largely amounted to position evening as the market has settled into a range of consolidated trade. While the size of the U.S. corn crop is large, lower prices have improved demand. But traders are monitoring the recent rally in the U.S. dollar index for signs this is diminishing the attractiveness of U.S. supplies.
Meanwhile, USDA yesterday reported more than half the crop is out, signaling the bulk of harvest-related hedge pressure should be behind the market. Harvest is on pace with the five-year average, limiting concerns about rain making its way across the Corn Belt this week.
|Wheat: Afternoon Comments (Tuesday, October 25, 2016 19:47:51)
Price action: Wheat futures saw two-sided trade, but in the end winter wheat markets closed marginally to 3 cents higher and spring wheat closed marginally to 2 1/2 cents lower amid spread unwinding. Buying in early trade was limited by a firmer tone in the dollar index, but as the dollar softened it lifted winter wheat markets. Some light support for winter wheat also came from concerns about dry conditions in the Central and Southern Plains, although yesterday's crop condition ratings were higher than year-ago levels. Otherwise, there was little fresh news for the market to dig their teeth into, which resulted in some spread unwinding between the winter and spring wheat markets.
|Cotton: Afternoon Comments (Tuesday, October 25, 2016 19:48:23)
Cotton futures got off to a firmer start, but the market ultimately settled midrange with losses of 20 to 28 points. While the overall uptrend of the cotton market since September remains intact, the market has seen some profit-taking in recent sessions. Pressure today stemmed in part from a one-point uptick in the amount of cotton USDA rates in "good" to "excellent" condition, signaling the overall impact of Hurricane Matthew on the nation's cotton crop was limited. The department also reported that cotton harvest is ahead of the five-year average pace. Thus, crop concerns are minimal for the time being.