Livestock Marketing

The markets are higher today as more snow is forecast in the central US and that will further delay corn harvest.  Farmer sales also tend to slow down during the week of Thanksgiving and that can be supportive too.  Andy Daniels, the founder of Daniels Trading, has an opinion about rice today

Export sales were above the average estimates and towards the top of the ranges.  US corn is well priced at these levels as are soybeans.  Corn is competitive with the Black Sea and South America will be out of the export game for the next few months.   US Soybeans are now about 30 cents under Brazil for December and 10 under for January.  Support for Jan Soybean is $9.00 and then $8.90.  A break below $8.90 could cause the funds to go from net long to net short.  I personally don’t see the funds getting net short unless the Phase One trade deal completely falls apart.

The USDA made small changes to the corn and soybeans supply and demand tables.  Corn yields came down to 167.0 from 168.4.  Bulls were hoping form more than a 1.4 bpa decrease.

CBOT markets chopped in range today on low volume. Pork exports were the highest of the marketing year. With China’s need for pork and a potential Phase One trade deal on the horizon, this could be just the start for strong pork export demand

The US and China will resume high level trade talks next week. We are bullish grains and oilseeds short term but we are bearish long term. We bullish cattle heading into Q4 2019 and Q1 2020