Grains Reload While Cattle Test Resistance
Presented by Heartland Investor Capital Management Inc. CTA
🐂 Cattle:
Live cattle are bouncing after completing what appears to be a short-term five-wave decline.
October cattle are approaching major resistance around $219-$220.
A stall near that area could produce another pullback before the longer-term recovery resumes.
February cattle could eventually work toward the $239-$240 area into the new year.
🐄 Feeder Cattle:
Feeders are also rebounding, but the larger trend remains lower.
October resistance remains near $328-$330, with the moving averages continuing to cap rallies.
A later break below $300 remains possible as the January or March contracts take over.
Additional Mexican cattle movement through border ports could add pressure into early 2027.
🌱 Soybeans:
Soybeans remain in a strong technical advance following the recent breakout.
The continuation chart points toward $13.41 initially, with the larger move potentially extending toward $14 or higher.
Vegetable oils, crude oil and canola are providing additional support.
The 60-day and 104-day exponential moving averages remain important downside support.
🌽 Corn:
Corn has pulled back for four sessions as harvest selling develops at elevated prices.
The $5.28-$5.30 area is the first major support zone, with another possibility near $5.21.
The current weakness is viewed as a fourth-wave correction before another rally develops.
The larger fifth-wave objective remains $6 and beyond if the bullish structure holds.
🌾 Wheat:
Wheat gave back much of its overnight rally after Saudi Arabia canceled a wheat tender over price.
The Black Sea remains effectively shut, forcing Russian and Ukrainian grain toward more difficult alternative routes.
Pakistan and Turkey are expected to return to the tender market, potentially establishing higher replacement values.
Chicago wheat remains corrective near term, but the larger objective remains above $8.
🇧🇷 Brazil:
Mato Grosso and Goiás remain dry as soybean planting approaches.
Mato Grosso, Mato Grosso do Sul and Goiás account for roughly half of Brazilian soybean production.
Forecast rainfall remains below normal across key northern growing areas while southern Brazil faces a different moisture risk.
Developing dryness could become increasingly important for soybean prices heading into November and December.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
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