Good Morning from Allendale, Inc. with the early morning commentary for November 16, 2020.
Grain Markets were mixed overnight with corn and soybean futures edging higher on global demand optimism while wheat futures slid lower as favorable weather was seen in the U.S. plains over the weekend. Brazil received more rain than expected over the weekend and looks to see precipitation continuing into Wednesday.
Last week, December corn futures were up 2.50 cents, January soybeans were up 46.25 cents, December wheat down 9.25 cents, December soymeal was up $7.40 and December soyoil was up 179 points.
USDA Weekly Crop Progress Report will be released this afternoon at 3 p.m. CDT. Trade is expecting corn harvest at 95% complete (91% last week, 87% average). Soybean harvest expected at 96% complete (92% last week, 93% average). Winter wheat conditions expected at 46% GTE (45% GTE last week, 52% GTE last year).
CFTC Commitments of Traders report is delayed and will be released this afternoon due to Veteran’s Day.
Private exporters reported no export sales or cancellations on Friday. Last week, there was only one corn sale to South Korea last Tuesday.
USDA November NOPA crush report will be released this morning as trade is looking for October crush at 177.1 mb (175.4 mb last year) while oil stocks are estimated at 1.448 billion lbs. (1.463 billion lbs. last month, 1.423 billion lbs. last year).
Safras last week pegged Brazil’s soybean planting at 67.7% complete (54.2% previous week, 64.7% average). Mato Grosso soybean planting at 94% complete (94.5% average).
Informa lowered 2021 U.S. corn area estimates to 91.742 million acres (91 million acres last year) while 2021 soybean area was lowered to 89.065 million acres (83.1 million acres last year).
Cash cattle finished the week trading at $110 with feeder cattle at $112. February live cattle futures finished the week only 40 cents higher after being up $3.30 last Tuesday.
Dressed beef values were mixed with choice down 0.52 and select up 1.22. The Feeder cattle index is 137.35. Pork cut-out values were down 2.94.