Markets Wait For Export Data
Nov 01, 2018
Good Morning from Allendale, Inc. with the early morning commentary for November 1, 2018!
Grain Markets were “scary” quiet with low volume and tight trading ranges during yesterday’s session. Harvest pressure continued to slowly pull down corn and wheat while soybeans made a last minute surge to finish the session higher.
September U.S. Soybean Crush has analysts’ average estimates at 171.1 million bushels (169.6 million bushel crush last month, 145.4 million bushels last year).
USDA will issue its weekly net export sales report tomorrow at 7:30 a.m. CDT. Trade estimates show corn export sales between 500,000 – 850,000 tonnes, soybean exports of 400,000 – 760,000 tonnes, wheat exports of 200,000 – 500,000 tonnes, soymeal exports of 150,000 – 300,000 tonnes and soyoil exports at 8,000 – 30,000 tonnes.
USDA will release September’s Fats and Oils Report tomorrow afternoon at 2 p.m.
Funds are estimated net long 16,400 corn contracts, net short 80,400 soybean contracts, net short 40,100 wheat contracts, and net long 80,400 soymeal contracts and net short 42,500 soybean oil contracts.
ADP national employment report showed private sector employment rose by 227,000 jobs last month, economists expected an increase of 189,000. September's payrolls count was revised down to 218,000 from 230,000.
Bunge announced it will add four new board of directors to create a strategic review committee to explore options for the firm, including a sale of the company, bowing to pressure from investors D.E. Shaw and Continental Grain Co. Three of the new directors are Continental Grain CEO Paul Fribourg, former Gavilon Group CEO Gregory Heckman and Pacific Point capital president Henry Winship. The fourth director will be mutually agreed upon and will join the board by the end of this year, totaling 15 board members.
Russia announced it will start allowing imports of beef and pork from nine Brazilian plants to resume starting tomorrow, ending an 11-month ban due to food safety concerns. 32 Brazilian plants will continue to be restricted from exporting meat products to Russia.
Chinese Officials announced they will lift African swine fever-related restrictions in Gongzhuling city of northeastern Jilin province. The local government plans to remove curbs on infected areas from Oct. 1, but it will keep monitoring the situation to prevent new outbreaks of the disease.
Live Cattle Futures rallied on month-end short covering and position squaring, with the nearby contract hitting its highest price in eight months. October live cattle contracts settled up 1.95 at 115.85, it’s highest price since March 6. Most-traded December live cattle rose 0.15 cents to 116.95.
Dressed Beef Values were higher with choice up 1.33 and select up 1.15. The CME Feeder Index is at 154.13. Pork cutout value was down 1.62.