Corn, soybeans, and wheat futures are in a sideways trade to start the last trading week of the month and quarter. Will Friday’s Quarterly Stocks report be a catalyst to get these markets moving north again?
Grain markets were under pressure in the early morning trade but managed to find their footing into the afternoon session to finish the day in the black.
Corn futures were able to defend our pivot pocket which helped propel prices higher into the afternoon. At the close the December contract was 4 cents higher to settle at 481 ¼. 15 cents on either side of 470 has been the trade for awhile now. TBD if that continues or not. Keep in mind that funds are holding their largest net short position since August of 2020.
November soybeans traded into our 4-star support pocket from 1280-1285 (today’s low was 1284 ¾). We talked about the significance of this pocket for a while now, stating in this morning’s report: “As mentioned in multiple interviews and in our daily reports, we would look at this pocket as a spot to consider buying into on the first test, whether that be short covering or establishing a new position.” The market was able to rally back to our pivot pocket, finishing the day 1 ½ cents higher to settle at 1297 ¾. If the Bulls can chew through 1300-1304 we could see relief come into the market with 1330 as a potential upside target.
December Chicago wheat was not only able to participate in the grain rally, but lead the grain rally in today’s trade. At the close the contract was 9 ½ cents higher to settle at 589. We remain optimistic on upside potential here.
Live cattle futures saw a choppy trade today, only to settle fractionally lower at 191.225. November feeder cattle finished the day 82 cents lower to settle at 262.70. December lean hogs were 35 cents higher to settle at 72.52.