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Closing Comments

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Corn moved into a recent new high today, and climbed above the 200 day moving averages for the first time since last June/July in many of the contract months.  These two points will help to keep the trend positive in the short term.  Farm Futures Survey results. released yesterday,  had shown a decline of around 4 million acres from the previous year and would produce a little over 14 billion bushels with a yield at 170.  Demand last year settled out at 14.5 billion bushels and could remain the same or more if prices stay here or go lower.  Export sales this morning for corn showed some good business with 53.8 million bushels sold, while the expected range was between 39.3 and 59.0 million.  Also, another private export sale of close to 5 million bushels to an unknown destination was announced today.

 

Soybeans have, at least for now, taken a short pause to take in to account the Argentina Heat wave may only last a week and then rains begin moving into the area after.  Also, Farm Futures Survey was showing an increase of close to 7 million more acres for beans in the coming year.  On a 50 bushel national average yield, would push a new crop soybean crop to 4.45 billion bushels.  Demand last year stood at 4.1 billion bushels.  Soybean sales were back to business also with 36.0 million bushels announced and the expected range was between 14.7 million and 27.5 million bushels. 

 

Chicago Wheat and KC try to catch up to Minneapolis this week, with Chicago putting forth the best effort this week.  Export sales for wheat were a little below the expected range and were seen at 8.9 million bushels, while the range was seen at 9.2 million and 20.2 million bushels.  Overall health looks good for crops and weather pretty benign for now.

 

Live Cattle were down a little bit today in the front months and up in the later.  Cattle contracts continue to keep a positive trend in daily and weekly charts.  The USDA reported that the average weight of steer carcasses was at 905 lbs.  That would be a 6 lbs. increase from the previous report. 

 

Hogs rounded out the week with an overall sideways driven trade.  The overall and trend remains on the up along with cattle, until proven otherwise.  The USDA reported weights of barrows and gilts at 211 lbs, which would be about pound heavier than the previous week.  Seasonally, hog weights tend to drift lower into the end of January and early February before the firm up again in April.  Export data released this morning and continued to show strong demand. 

 

In Other news, the Inauguration speech by new U.S. President Donald Trump was very similar to his campaign driven message of a united country and the time for change is now approach.  So, here we go!!!

 

Closing Market Snapshot

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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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