THURSDAY, November 7, 2024, 4:50 AM CST
MORNING MARKET COMMENTS BY Al Kluis
This is Kluis Commodity Advisors with your opening grain comments for November 7. Grain prices were sharply lower at the start of the day following the Trump election but fought back into the close with corn up 7, soybeans 2 higher to 2 lower, and with the bull spreads working in both corn and soybeans. Wheat closed mostly lower but held key chart support. The US stock market soared to new all-time highs and is higher again in the overnight trade.
In the initial trade today, corn is 1 cent higher, soybeans are 7 cents higher and wheat is 2 to 6 cents higher.
Join us Friday (November 8) at 10:45 AM for the monthly USDA crop report webinar. The reports will include updated US and global supply and demand numbers, and the latest USDA projections on the size of the South American corn and soybean crops. This report will include the updated USDA corn and soybean production estimates. The webinar invite was emailed to you on Tuesday and included the Webinar ID and Password.
TO DO: There are no new recommendations at this time. Livestock feeders should get ready to book soybean meal.
PRICE TARGETS: Click here to review our current price targets.
WHAT WE’RE THINKING: The Trump sell-off in the grain markets was short-lived. The promise of less regulations and stronger economic growth was viewed as long-term positive for demand.
WHAT TO WATCH: The weekly USDA Export Sales report is due out this morning.
All numbers are in metric tons. Traders expect the following sales for the week ending November 1…
THE MARKETS
Overnight Markets
December Corn: The trading range is 3 cents; prices are 1 cent higher at $4.27.
January Soybeans: The trading range is 7 cents; prices are up 7 at $10.11.
Wheat: CBOT wheat is up 6; Minneapolis wheat is up 2 and KC Wheat futures are up 6 cents.
Global Stock Markets: The stock market in China is up 2%, Japanese stocks are down 0.2% and European stocks are up 0.4%.
Outside Markets: The US Dollar Index is down 0.18 at 104.82, crude oil is down 58 cents per barrel at $71.10, S&P futures are up 11 points at 5,969, Dow futures are up 95 points at 43,996 and gold futures are down $4 at $2,672.
Livestock Futures: Livestock futures closed mixed on Wednesday. December Lean Hogs closed up $1.00 at $82.12. December Live Cattle closed 62 cents higher at $185.40. January Feeder Cattle closed up $1.67 at $244.02.
TODAY’S CHART: This is the daily CBOT Soybean Meal Continuation chart. This chart shows the high and double top at $390 in late May and early July of 2024 From there, soybean meal went down to an early low ($304) in late August, then rallied back to $354 in early October before dropping to the low ($293) on Wednesday. This appears to be a major low in the meal market. Livestock feeders should be ready to buy meal needs through the second quarter of 2025 on any Action Alert later this week.