USDA Really Rocked The Boat
Presented by Heartland Investor Capital Management Inc. CTA
🌽 Corn
USDA stocks came in well above expectations after feed residual was cut 200 million bushels.
That pressured corn sharply lower, but we still view this as a correction within the larger uptrend.
Harvest reports continue pointing toward yields below USDA’s current expectations.
October 9 becomes the next major date, with a lower national yield still expected.
We view this break as an opportunity for feed users to secure additional corn needs.
🌱 Soybeans
Soybean stocks were friendly and the market initially tried to rally after the report.
Strong processor basis levels continue suggesting nearby supplies are tighter than the headline stocks imply.
Beans held their technical structure despite being pulled lower by corn.
Additional Chinese buying could provide the next catalyst higher.
We continue to view the soybean trend as constructive.
🌾 Wheat
Wheat stocks were essentially in line with expectations and production changes were relatively minor.
The market was pressured primarily by the sharp break in corn rather than bearish wheat fundamentals.
European corn and wheat supplies remain supportive of U.S. export opportunities.
Seasonal tendencies also begin improving as we move into October.
We believe wheat is approaching an area where recovery can begin.
🐄 Cattle
Live cattle continue improving as support levels hold and cash cattle remain firm.
December cattle are working toward the 227 area, with additional upside possible later this fall.
Feeder cattle held above important resistance despite today’s volatile grain trade.
November and January feeders still have room to work higher near term.
We remain focused on higher March feeder prices as an opportunity to add hedging protection.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
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