Grain Market Recap

Price action today provided some reprieve after yesterday’s mostly bearish USDA report, as each of the major grain contracts managed to close in positive territory. The December corn contract remains dangerously close to its contract lows, but residual strength from soybeans and wheat helped propel the contract higher today. 

Corn

Yesterday’s USDA report was not the bullish catalyst grain bulls were hoping for. In fact, shortly after the report, we managed to trade down to the contract’s low-price, before managing to claw back some of its gains. We tested the lows again early in today’s session, but rallied through the balance of the morning to push back above trendline support. For the day, December corn closed 5 ¾ cents higher to settle at 482 ¼. 

Soybeans

The November soybean contract was able to defend support above the 200 day moving average today, coming dangerously close to it at 1330 ¾ early in today’s trade. After trading lower for the majority of today’s session, soybean bulls were able to rally into the close and ultimately push the contract back into positive territory, ultimately settling at 1349 ¾ – up 3 ¼ on the day. 

Wheat

December wheat continues to try and hammer out a bottom. After being the component of the grain complex to close in positive territory yesterday, wheat bulls were able to build on that momentum. Moreover, we’ve settled in the upper third of the daily trading ranges for each of the past two days. After closing 9 ¾ higher to settle at 597 ¼, wheat bulls will look to continue its recent strength tomorrow. 

Livestock

On the livestock side of things it was a choppy morning, but that ultimately turned to weakness by the close.  At the close October live cattle futures were a buck lower to settle at 183.15, about 87 cents off the high.  Volume continues to shift to the December contract which only trailed October trade volume by about 2,000 contracts.  December live cattle futures were 60 cents lower at the close, settling at 187.85.  October feeders remain the most actively traded feeder contract, they finished the day 2.20 lower to settle at 259.05.  

On the snout side, October lean hogs were 1.30 lower to settle at 83.97.  December lean hogs trailed October in volume by just about 1,500 contracts.  Dec finished 55 cents lower to 76.35.