This week’s action:
Corn Dec23 up 2 at $4.95
Beans Nov23 up 22 at $13.02
KC Wheat Dec23 up 1 at $6.68
Fats Dec23 down 2.125 at $184.775
Feeders Nov23 down 9.350 at $242.775
Hogs Dec23 down 3.500 at $68.025
Corn Dec24 down 1 at $5.19
Beans Nov24 up 16 at $12.67
KC Wheat July24 unch at $6.87
Corn futures came in like a lamb and out like a lion this week, gaining 13 cents Thursday and losing most of those gains by the close today, all to gain 2 pennies since last Friday’s close. Today markets topped 5.09 before a disappointing 2nd half of the session. Historical data would suggest the lows may be in for the year, but profit-taking was quick to squash any significant rally the market attempted yesterday into today. Basis feel slightly firmer to unchanged versus last week in most Tredas territory.
Beans had a respectable, if somewhat boring week but lost momentum to close, following corn down its rabbit hole. Early week gains were driven by increases in soymeal, with multiple analysts commenting on bean meal and oil demand being strong into 2024. Trading in between the 20- and 50-day moving averages, $13 should act as near-term support rolling into the final weeks of bean harvest. Crusher basis has firmed quickly over the last 10-14 days.
USDA Cattle on Feed Report Recap:
- Oct 1 Cattle on Feed notably higher than expected
- Sept Placements significantly higher than expected
- Sept Marketings lower than expected
The midday GFS is drier across northern Brazil than the overnight forecast was. A few scattered showers will slide into Mato Grosso and various pockets late next week (Oct 25-28th) before an expected dry spell returns. Otherwise, meaningful rainfall in South America is relegated to southern Brazil and Argentina. The Argentine rains start Sunday with Brazilian rain being pushed to Thursday of next week.
Across the US, monthly rent was $81 cheaper in August than the monthly mortgage payment on a home for sale with a 30-year mortgage, assuming 10% down and a 7.18% interest rate on a house listed for about $350,000.
34% of Californians say they are considering moving out of state due to housing costs.
Biden is seeking a $105 billion security aid package for Ukraine, Israel, and the U.S. Southern border and more. The request comes with Congress’ business still at a standstill as House Republicans battle over who should be the next speaker.
Fed Chair Jerome Powell on Thursday suggested the US central bank is inclined to hold interest rates steady again at its next meeting, but he left the door open to the possibility of a future hike if policymakers see further signs of resilient economic growth.
Officials held their policy rate in a range of 5.25% to 5.5% last month. Their forecasts showed 12 of 19 officials wanted one more hike this year and the median projection showed that fewer rate cuts expected next year than what was forecast in June.
Something That Probably Means Nothing:
Taylor Swift is expected to make as much as $4.1 billion from her most recent Eras Tour.
Quote of the Week:
“Discipline is the bridge between goals and accomplishment.”
Enjoy your weekend!