Cattle bulls continue to run; USDA grain report Friday
By Brady Sidwell, Enid News & Eagle (OK)
Nov 1, 2019
It’s November market watchers. Only 7.5 weeks until Christmas. Hopefully, you enjoyed the extra hour of sleep with clocks turning back one hour as daylight-saving time came to an end overnight at 2 a.m. It’s chilly again this morning, but a modest improvement from this past week.
Rain chances return on Wednesday. Soybean and milo harvest, as well as late corn picking, continue in Oklahoma, with sesame harvest to get underway soon after the recent freezes.
The cattle market has been in the lead this week with feeder futures making big moves on Wednesday as well as Friday fending off the weakness Thursday to close positive for three consecutive sessions. October feeder cattle contacts cash settled on Thursday with November now the front month that settled above $149 to end the week, not seen since May 10. Despite a minor pullback on Thursday, live cattle contracts also managed to make solid gains this week. December live cattle surged 2% on Friday alone to settle above $119.50. April live cattle closed at $125.45. For wheat pasture contracts, March feeders moved up over 1% on Friday to settle above $145, while April pushed above $146 and May above $147.
News out of China on Friday that consensus had been reached in principle with the U.S. during the week’s trade talks helped buoy most all ag commodities as well as equities with the S&P 500 on Friday making yet another all-time this week. While the KC wheat futures made a late surge on Friday jumping 1.20%, grains largely have continued to experience sideways price action in a tight range-bound trade awaiting news on the U.S.-China deal and USDA’s next monthly WASDE report coming on Friday. The latest harvest progress report released last Monday showed U.S. corn progress continuing to trail the average of 61% at just 41% complete. U.S. soybeans came in at 62% complete also behind the average of 78%.
I witnessed this slow harvest progress firsthand on a trip to Iowa last week. Driving through Kansas, Missouri and Iowa, most of the corn and soybean fields were untouched...