Closing Market Report- 11/8/21- Position Squaring Seen Ahead of Tuesday’s WASDE Report

Row crops and wheat prices diverged ahead of Tuesday’s November WASDE report, with January soybean futures taking out the October low and closing below $12/bu for the first time since late March, led lower by soybean oil futures. January soybeans closed a fourth consecutive day lower as traders showed concern about USDA’s new supply and demand estimates, due out Tuesday at 11 a.m. CST. The two winter wheats, on the other hand, ended with small gains, supported by USDA’s estimate of the lowest U.S. wheat supplies in 14 years. Corn was quiet as even though we expect a higher yield estimate, the anticipation of lower acres next year due to high input costs is supportive.

Upon seeing how packers committed the cattle they bought last week in the cash cattle market (90% for the nearby delivery and 10% for the deferred delivery), it’s safe to assume that this week’s cash cattle market stands a chance at gain another $1.00 or $2.00. The lean hog market is still trying to dial in its trajectory, as technically traders are cautious about the market’s upward potential, but pork cutouts continued to keep chopping sideways.

Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406

Also, more analysis with Jesse Allen and John Heinberg of Total Farm Marketing on today’s Market Talk below: