MARKETS
Yield increase of 2.7 bu. per acre pushes carryout to 1.849 billion bushels, sending stocks-to-use back above 10%.
Cattle futures ran into chart resistance after new highs for the move on Thursday and on live cattle the market tested the long term trend line.
Oliver Sloup of Blue Line Futures says funds were in liquidation mode in soybeans, decreasing their risk exposure with spillover weakness in corn.
Corn was bouncing off the $5 psychological level of support and the close will be important Thursday.
USDA’s 2.095 billion bu. stocks in all positions estimate for corn is an increase of 173 million bu. compared to the ending stocks in the September WASDE,
Joe Kooima of Kooima Kooima Varilek says the report is the kind of trigger needed to change the momentum in the cattle market.
As Trump and Xi prepare to meet, economists say China’s soybean purchases have little to do with supply and demand — and everything to do with political favor and easing trade tensions.
Jerry Gulke, president of the Gulke Group says at the same time the latest CFTC Commitment of Traders report showed the large speculator adding to their net long positions in corn and soybeans and have been extending that position since the week of July 6.