Corn
Corn futures continue to recover from recent losses due supply side concerns sparked by the October Supply/Demand report. December 2021 futures have support at the recent low of $5.06 ¾, and needs to close above $5.50 to signal further gains are possible. Ethanol demand has been a supportive factor. Harvest is still well ahead of the average pace, with 66% of the crop harvested compared with a 5-year average of 53%. However, strong storms and heavy rains throughout much of the corn belt this week will delay progress. Weekly exports were disappointing at 35.1 million bushels, down from 50.1 million last week and near the low end of trade expectations.

Soybeans
November soybeans have fallen to 6-month lows, only finding support when the reached the March low of $11.84. Prices are attempting to move higher but continue to be capped by resistance near $12.50. Weekly exports were disappointing at only 43.5 million bushels, below trade estimates that ranged from 47-73.5 million bushels. China was the main buyer this week. That’s down from last week’s 105.8 million bushels. Shipments were strong, though, at 88.4 million bushels. The crop is 73% harvested, on pace with the 5-year average of 70%, but this week’s weather will cause delays.

Rice
Rice futures have posted sharp losses in recent days. January has established resistance at the high of $14.22. We have seen downward pressure since the market faltered at that level, charting a potential double top. On Monday of this week, January futures charted a bearish key reversal, signaling further weakness in the market is likely. However, the market looks to be building support at $13.54. From a fundamental perspective, demand has been supportive in recent weeks. World supplies of rice are adequate to meet demand, and India is harvesting a record-breaking crop, which could be a negative factor in the short-term. Longer-term, though, food security concerns could become a factor. Fertilizer prices could have an impact on next-year’s crop around the world.

Cotton
Cotton futures have backed off recent highs, but losses have been limited. The crop is only 35% harvested, and widespread rains this week will further delay harvest and could impact the quality of the crop, as 91% of acres have open bolls. The December contract is finding resistance near 111 cents, and above that level, the contract high of 116.48 cents will be tough to overcome.

Cattle
The trade in live cattle futures has been choppy in recent weeks. Disappointing cash movement has been a bearish factor. The monthly cattle on feed report, released last Friday, provided a bullish surprise. Feedlot placements were pegged at only 97.2% of the year ago total, when the trade was expecting an increase. The October 1 feedlot inventory was reported to be 98.5% of the pervious year. Trade expectations ranged from 98.6%-100%. December futures have topped previous resistance of $131 this week, but need to be able to hold above that level to suggest further gains are possible.

Hogs
Hog futures continue to move lower, under pressure from seasonal weakness in cash hog and wholesale pork prices. The charts look bearish, with December hogs in a position to retest long-term support at $71.27 ½.