Grain Market Recap
Grain markets were mixed in Tuesday’s trade. At the close December corn futures were 3 cents higher to settle at 413 ¾. January soybeans, which is now the most actively traded contract, settled 7 cents lower to 979. That was a new closing low for the move and puts prices within arms reach of the August contract low, 973 ½. December Chicago wheat was the leader to the upside today settling 11 ¾ higher to 570 ½.
Wheat may have found strength today on the back of a poor weekly crop progress report, that report showed good/excellent conditions for winter wheat at 38%, that was below expectations of 43% and the second worst year since 1987, second to 2022. The reason for the poor conditions comes as minimal rainfall in key growing areas which has been a hindrance to emergence before winter dormancy.  The report also noted that 80% of the crop is now planted with emergence at 56%.
Weekly export inspections were reported at 248,534 metric tons, or about 9 million bushels, that was fractionally less than last week’s report but still within the range of expectations. The next export data point scheduled for this week’s comes in the way of Thursday’s weekly export sales report, released at 7:30am CT.Â
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Livestock Market Recap
Cattle futures were firm to start the week but gave back some ground in today’s trade. At the close December live cattle futures were 1.32 lower to settle at 187.95. January feeder cattle lost 2.92 cents to settle at 244.02. and on the snout side, it was another higher day with the front month December contract leading the way, settling 2.20 higher to 82.82, that’s another new contract high.
This morning’s wholesale boxed beef report was weaker with choice cuts 35 cents lower to 323.15 and select cuts 1.82 lower to 290.36. The 5-area average price for live steers on Monday afternoon was reported at 190.05, steady with the end of last week. Monday's slaughter was reported at 121 k head, 1k more than the same day last week but 3k less than the same day last year. Â
The CME CVOL index for live cattle had an uptick today to 12.27, which is still near the lower end of the year’s range. The lack of volatility has come on the back of a firm fundamental backdrop but some analysts are noting that low volatility may make options more appealing for those looking to protect downside risk or express a bearish opinion in the market. Fund positioning is the largest since last October with Managed Money holding a net long position of over 90k futures/options contracts.Â
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