Market Analysis
Grains reverse to close higher Thursday as Darin Newsom with Barchart says end user or commercial buying stepped in. He says there is strong demand for corn in soybeans at current price levels which is a bullish sign.
Garrett Toay, AgTraderTalk, says corn and wheat traded higher on technical or corrective buying as well as big flash export sales, noteably to Mexico.
Scott Varilek, Kooima Kooima Varilek, says corn and soybeans are up after the news of 80 million bushels of corn sales and 6.4 million bushels of soybeans sales. Cattle opened higher before profit taking and hedge pressure set in.
Kent Beadle of Paradigm Futures says grains saw follow through selling pressure after a lower day Friday. The complex also saw spillover from the risk off day in outside markets including the higher dollar and lower crude oil.
Brad Kooima, Kooima Kooima Varilek says cattle futures are mostly higher early Monday on better cash news and trying to negate Friday’s reversal. Grains are seeing pressure from harvest and South American rain chances.
The October WASDE effectively solidified the supply side of the U.S. corn and soybean balance sheets for the 2024-25 marketing year, though Gulke was surprised USDA didn’t raise yields because harvest has never been so good on his farm.
Unlike some past years, the October report didn’t provide much for the bulls or the bears. USDA did raise corn yield 0.2 bu. per acre to a record 183.8 bu. and lowered soybean yield 0.1 bu. per acre to 53.1 bu.
Oliver Sloup, Blue Line Futures says after a non eventful WASDE, grains saw some profit taking heading into the weekend with row crops seeing harvest pressure.
We recap this week’s price action and provide outlook for the next 5, 30 and 90 day segments.
Scott Varilek, Kooima Kooima Varilek, says cattle futures need to take out the next layer of chart resistance to move higher. Grains continue to add war and weather premium and that shouldn’t change unless the WASDE is extremely bearish.