Grain Markets Lower on Buyers Strike

Grain Market Recap

Grain futures continued to come under pressure in Tuesday’s trade.  December corn futures fell another 7 cents, settling at 401 ¼.  Traders will be keeping a close eye on that psychologically significant $4.00 level through this week’s trade.  Over to soybeans, it was weaker as well with the November contract settling a nickel lower to 991, that was about 10 cents off the early morning low.  $10 will be that round number traders will watch not  just through this week, but into next week’s options expiration as well.  December Chicago wheat slid 5 ¾ cents lower to settle at 579 ½. 

Weekly export inspections were released this morning, for corn that came in at 430k metric tons which was below the low end of expectations and well below last week’s 948k metric tons.  Soybean inspections were reported at 1.57 million metric tons which was within the range of expectations and in line with what we saw last week.  Wheat was also in line with expectations at 371k metric tons. 

September NOPA crush was released this morning, that was reported at 177.3 million bushels, well above the average analyst estimate of 170 million bushels.  Soybean oil stocks came in at 1.066 billion ponds, that was below the average estimate of 1.111 billion lbs.

Livestock Market Recap  

Livestock futures were lower in Tuesday’s trade with live cattle, feeder cattle, and lean hogs all giving up ground.  At the close December live cattle futures were 1.40 lower to settle at  186.52.  November feeder cattle settled at 246.47, that was 3.10 lower on the day.  On the snout side, the most actively traded December contract led the way lower with the December contract settling at 75.22, down .57 on the session. 

This morning’s wholesale boxed beef report was strong with choice cuts 3.04 higher to 316.36 and select cuts 2.68 higher to 291.78.  Yesterday’s daily livestock summary showed the 5-area average price for live steers at 187.21, that’s pretty steady with what we’ve seen over the last week.  Monday’s slaughter was reported at 120k head.

Recent strength in economic data may have been a tailwind and a catalyst for Managed Money to express a bullish opinion on the markets.  Friday’s Commitment of Traders report showed funds were net buyers of roughly 13,600 futures and options contracts, expanding their net long position to over 77k contracts, broken down that is about 94k longs VS about 17k shorts. This is the largest net long position Funds have held since last October.  

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