Soybean futures were supported by strong export demand and erratic rains across central Brazil, but gains were erased with sharp losses Friday. While forecasts continue to call for “better” rain chances across central Brazil next week, some forecasters are now signaling November may be drier than normal. South American weather will be an increasing focal point. December corn futures continue to grind around the $3.50 level. Funds have amassed a huge short position in corn, but have little fundamental reason to cover shorts. That continues to limit the downside and upside. Winter wheat futures posted new contract lows early in the week, but limited selling below the old lows resulted in a modest rebound and little net change for the week.
Cattle and hog futures surged to new highs, which encouraged us to advise fourth- and first-quarter hedges. While the cash hog market is showing signs of softening, cash cattle prices continue to soar.
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