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Closing Comments

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Closing Comments

The weekly EIA inventory report showed Crude Oil stocks falling 4.2 mln, gasoline increasing 2 mln and a decline of distillates of 1.3 mln. This came in close to analyst expectations. Ethanol data was positive, showing steady production and lower stocks.

Corn has now put in its’ highest close since October of last year, although throughout the day it was a struggle to keep trading higher.  Corn saw a .10 range from down .05 to up .05 cents on the day.  Profit taking ahead of the long weekend kept corn on the defensive, while another good week of export sales and strong wheat and soymeal kept it into new highs.  Corn will be keeping an eye on weather ahead of the long weekend to see if there are any changes to 10-15 day forecasts.

Soybeans closed lower on the day due to profit taking after making a new high in the July contract and despite a stronger meal market.  The size of the Argentina crop still being less hit the news wires again, but not real changes.  Crush margins continue to defy gravity and helped keep meal positive in the end, and a much weaker close in beans from happening. 

Wheat futures put in a much stronger day on ideas that livestock producers may be looking replacing feed rations with wheat instead of corn.  The spread between July wheat over July corn fell to about .61 cents per bushel this week, and down from 1.25 on April 1st, making wheat the cheaper alternative feed ingredient.  Export sales this morning at the bottom end of the expected range, but rather neutral information overall.

Cattle and feeders continue the fight to rebound from the COF report of last Friday.  The kickoff to the grilling season is tied to the long weekend of Memorial day and helping to provide the lift.   

Hogs followed through again today to the upside and trying to build in short term V-bottom on the charts, which should take them back toward the highs from a couple of weeks ago. 

Closing Market Snapshot

 

 

All opinions expressed in this commentary are solely those of Water Street Advisory. This data and these comments are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. There is significant risk of loss involved in commodity futures and options trading and may not be suitable for all investors.

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