Market Snapshot, Noon CT (VIP) -- October 23, 2013

October 23, 2013 07:07 AM

Corn futures are 3 to 5 cents higher with December leading gains.

  • Spillover support from soybeans and wheat has corn futures trading higher.
  • The recent shift to cold and wet conditions in the Corn Belt plus the 6- to 10-day outlook for more of the same is boosting concerns over the much-delayed harvest.
  • Gulf corn basis is steady in late-morning trading.
  • Lanworth raised its 2013-14 world corn production forecast by 3 MMT to 955 MMT, citing larger U.S. and Chinese harvest expectations. It expects a 13.792 billion bu. U.S. corn crop.
  • Ethanol production for the week ended Oct. 18 rose 28,000 barrels per day to 897,000 barrels per day. Ethanol stocks rose 80,000 barrels to 15.5 million bales.
  • December futures are testing resistance at last week's high at $4.47 3/4 with a heavier band of resistance resting at $4.50.


Soybean futures are higher, ranging from 3 cents higher in the far deferred contracts to 13 cents higher in the November contract.

  • Traders are reacting to the combination of export news and nearing the two-thirds completion point on soybean harvest.
  • News Russia bought 120,000 MT of soybeans for 2013-14 delivery is lifting futures.
  • Gulf basis is a penny higher for November delivery and 3 cents firmer for December and January delivery in late-morning trading. This hints more export business may be brewing.
  • The market will receive an update on export sales for the week ended Oct. 3 tomorrow. Recent reports have reflected improving demand.
  • Lanworth raised its 2013-14 world soybean production projection by 2 MMT to 288 MMT on expectations for larger crops in the U.S. and Argentina. It expects the U.S. bean crop to come in at 3.215 billion bushels.
  • The November and January contract's ability to find buying above the psychological $13.00 level is also a bullish technical factor for the bean market. November futures are testing the 50-day moving average, which offers resistance at $13.17 3/4 today.


Wheat futures are trading 3 to 6 cents higher, with the HRW market leading gains.

  • Chart-related buying due to the December SRW contract's close above the psychologically significant $7.00 mark yesterday is lifting futures today along with spillover strength from soybeans and corn.
  • Continuing concerns over crop conditions in Argentina, Australian and the Black Sea region continue to lift HRW and HRS futures, supporting SRW in the process.
  • The market is brushing off news Lanworth raised its global wheat forecast by 1 MMT to 707 MMT, citing expectations for larger Russian production.
  • Traders are anticipating positive news in tomorrow's export report from USDA, which will shows export sales totals for the week ended Oct. 3. This would have preceded the major price break in the U.S. dollar index last week, however.
  • Tempering gains are warm conditions forecast for Southern Plains, which will help with establishment and development of the recently planted winter wheat crop.


Live cattle futures are moderately higher in the October contract and narrowly mixed in other contracts. Feeder cattle futures are also choppy.

  • Cattle futures are favoring the upside on expectations for higher cash cattle trade.
  • A few sales reports indicate light trading at $132 in the Southern Plains is occurring, which is $1 to $3 higher than a week earlier. This is a record for Texas.
  • October futures are trading about even with this price while December futures carry a $1 premium to it.
  • Showlist estimates are down at all locations this week, which is supporting feedlot asking prices.
  • Choice boxed beef rose another $1.35 to $200.68 this morning. Select rose $1.84 as well. Equally impressive, movement improved 116 loads.
  • Gains in corn futures has feeder cattle futures on the defensive.


Lean hog futures are slightly weaker in nearby futures and slightly higher in deferred contracts.

  • Profit-taking and weakness in pork cutout this morning are combining to press futures slightly lower this morning.
  • The profit-taking was triggered after yesterday's cash index-inspired runup. The December contract remains at around a $3 discount to index, but market bears continue to expect rising supplies and weakening wholesale demand.
  • While traders continue to look for weaker cash prices, cash hogs are listed as steady in today's cash market.
  • USDA reports the pork cutout fell $1.29 this morning and movement is a strong 268 loads.
  • Average hog weights in Iowa and southern Minnesota ticked up 0.1 lb. the week ended Oct. 19.
Back to news


Spell Check

No comments have been posted to this News Article

Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer