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Closing Comments

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Closing Comments

 

Corn traded in another tight range today with most of the direction coming in the form of a break in beans and wheat. Ethanol production increased to 1057k per day vs. 1,044 last week which consumed 311 million bushels.   A bigger move maybe lying in wait, as there is a crop report tomorrow and focus could then shift to acres and also US steel and aluminum tariffs are expected to be announced this week.

 

Soybeans ended the daily higher close at 11 days with November closing down .03 and old crop contracts down .07-.08.  Certainly allowable from a technical standpoint to see a set back if it comes.  The midday GFS weather model added a little more rain to the NW Argentina and S Brazil areas.   

 

Wheat failed to breakout to the upside in todays’ trade after rebounding losses from the last couple of trading sessions.  Plains look to still be dry through March 20th, and much attention will be paid to the last half of this month and first week of April.  Seasonally, rains do trend to come in this timeframe and will be very needed for the US HRW growing areas.   

 

Live Cattle followed through to yesterdays’ selloff and rallies will be tuff to sustain with large cattle on feed totals and rising beef production.  The grilling season is just around the corner (hopefully) and should bring in much needed demand as an offset.

 

Hogs showed losses similar to yesterday and have officially made another wave lower on the charts.  Nearby contracts fared better in bouncing off the lows compared to some of the deferred contracts.  

 

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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