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Midday Update

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Midday Update

·         Economic news this morning is mixed, with home prices up 4.3% in November, but December durable goods orders dropped 3.4% unexpectedly.

·         Wall Street focused on the durable goods orders number, fearing that it might be reflective of a slowing U.S. economy.

·         The dollar is down sharply in profit taking on the possibility that a slowing global economy combined with today’s U.S. data may lead the Federal Reserve to delay interest rate hikes to next year. The dollar has already traded more than a 1,000 range today as it plummets.

·         The Dow Jones Industrial Average has been trading more than 300 points lower this morning with the VIX, Wall Street’s fear index, up more than 15%.

·         Exporters report that China cancelled another old-crop soybean purchase totaling 4.4 million bushels, while “unknown destinations” bought 4.1 million.

·         Like the financial markets, traders have chosen to focus on the negative news, in this case being the soybean cancellations, amid the uncertainty on Wall Street.

·         Today’s cash hog market is mostly steady in the Midwest, with Illinois steady to 50 cents lower.

·         Corn is down 3 cents in follow-through selling.

·         Soybeans are down 8 cents after the rally in soymeal failed to hold as the first South American soybeans hit the export market.

·         Wheat is fractionally higher in Chicago on corn/wheat spread unwinding, but down 2 in KC and steady to 1-cent lower in Minneapolis.

·         February live cattle are $2.20 higher on short-covering to correct and oversold market.

·         Feeder cattle are $2.15 higher, while the cash market continues to soften.

·         Lean hogs are $0.35 to $1.20 higher on a corrective bounce, while the cash market is mostly steady.

 

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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Arlan Suderman | Senior Market Analyst
WATER STREET ADVISORY® | www.waterstreet.org
(316) 729-4599 | asuderman@waterstreet.org

Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK involved in trading futures and or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. This information is provided freely and is NOT in the capacity of a trading advisor. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. Information provided is not to be construed as an offer to sell or solicitation to buy any commodity or security named herein.

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