Grain futures were softer in the early morning trade but firmed through Wednesday’s trade with corn, soybeans, and wheat all closing in positive territory. At the close December corn was 2 ½ cents higher to settle at 419. November soybeans settled 5 ¾ cents higher to 997 ½. And December Chicago wheat tacked on 2 ½ cents to settle at 578 ½.
There were three flash sales reported this morning, two for soybeans and one for corn. The first soybean flash sale was for 130k metric tons or about 4.8 million metric tons for delivery to China. The other sale was for 259k metric tons or about 9.5 million bushels for delivery to unknown destinations. On the corn side, the flash sale was for 100k metric tons or about 3.9 million bushels for delivery to unknown destinations. Weekly export sales will be out tomorrow, the average expectation for soybeans comes in at 1.79 million metric tons. For corn the average estimate comes in at 3.13 million metric tons. And for wheat, the average estimate comes in at 518k metric tons.
November options expiration is Friday, which could play a role of price action into the end of the week. Open interest for the $10 calls is 13,421 and open interest for the $10 puts is 15,736. Moving past options expiration means first notice day is just about a week away for November futures. We will continue to see volume shift to the January contract.
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It was a bit of a mixed back in livestock markets today with cattle lower and lean hogs higher. At the close December live cattle futures were 25 cents lower to 187.87. January feeder cattle settled 2.22 lower to 243.82. On the snout side, the most actively traded December contract settled 1.05 higher to 80.17 which is good enough for a new closing high. The recent rally has brought the RSI for December lean hogs to 69.97.
This morning’s beef cutout report showed choice cuts 8 cents higher to 324.04 and select cuts up 1.37 to 296.17. Yesterday’s 5-area average price for live steers was reported at 187.00 which we'd call steady. Tuesday's slaughter was reported at 123k head, 2k less than the same day last week and 4k less than the same day last year.
The live cattle CVOL index did tick higher today but remains at relatively low levels. With funds holding their largest net long position since last October some analysts have noted that if volatility were to rise in the outside markets that could translate to a rise in volatility in the cattle complex. Economic data out Thursday morning includes initial jobless claims and new home sales. Friday’s data consists of Durable good orders, Michigan consumer sentiment, and Atlanta fed GDP
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