Corn and wheat futures saw strong gains in today’s trade as the market flirts with a technical breakout that could take prices back above $5.00.
Corn futures were finally able to trade out above 490 which sparked a wave higher into the final hour of trade. At the close December corn futures were 11 ½ cents higher to settle at 497 ½, the highest close since August 8th, nearly two months! Today’s move was more on self-fulfilling technical momentum rather than new news across the wire. Today’s trade could certainly spill into momentum as we look ahead to the last trading day of the week.
Soybeans have been choppy over the last few sessions and today was no different. The market was under pressure early on but was able to defend this week’s lows and rally back near our pivot pocket. At the close November futures were 7 ¾ cents higher to settle at 1280 ¾. If the Bulls can chew through 1285 on a closing basis we could see that spur additional technical momentum with the next objective coming in from 1300-1308.
Wheat futures were the leader to the upside today with the December contract settling 18 ¼ cents higher to 578 ¼. A close back above 570 is the first step in moving prices higher, the next hurdle comes in from 585-587. If corn and wheat can continue to work together in this rally, there may be able to feed off of each others momentum.
December live cattle were under pressure today as long liquidation continues to be a theme among a higher interest rate environment. At the close December live cattle were 65 cents lower to settle at 185.37. 184-185 is going to be a key pocket to keep a close eye on as we wrap up the week, this is where the market really started accelerating higher last month, September 6th.
November feeder cattle traded on both sides of unchanged but once again finished the day near unchanged. At the close, November futures were .12 lower to settle at 250.30. All in all, we see that as pretty impressive considering the rally we saw in the corn market.
Lean hogs got shot out of a cannon today following an impressive weekly export sales report. That report showed net sales of 43,000 MT for 2023 were up 57 percent from the previous week and 61 percent from the prior 4-week average. At the close December futures were 3.10 higher to settle at 72.27.