Weaker markets overnight with corn down 5 and soybeans down 13.
Friday afternoon’s USDA Cattle on Feed Report showed all U.S. cattle on feed as of October 1 at 11.449 million head, or 99.1% of last year, basically right on the average trade estimate; September placements came in at 96.2%, slightly below the average 96.4% trade guess, with September marketing’s at 104.0% of LY, in line with the average 104.0% expectation.
The forecast in Brazil and Argentina is wet this morning and will stay that way for the next 10 days. After that the long rang forecast moves back to drier. There is no evidence of any heat in the forecast or any dome. Weather in Brazil is ideal, and Argentina is improving.
Harvest is rolling on and today corn should pass the 50% mark. News is limited this Monday, which mostly leans negative. Support in the CZ22 has held in the 6.80’s over the past week we’ll see if that is the case today. At some point I think we will see a larger correction in corn as the funds are holding a large, long position. Cash basis is tight for corn and beans across the country as farmers have been slow sellers. I’m not sure this is the best idea as I think you should be a willing seller as the demand picture doesn’t look good for 2023.
Have a Safe Day!