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Midday Update

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Midday Update

·         Trade chatter today suggests that China may have purchased more U.S. and Canadian hard red spring wheat.

·         On the international front, global traders reporting that Russia is stepping up quality inspection on exports to limit wheat shipments ahead of implementation of its export tariffs at the end of the month. However, U.S. wheat remains too expensive to replace the displaced business.

·         Grain and oilseed prices posted a technical bounce after holding above previous day’s lows and other areas of chart support. However, follow-through buying from overnight simply wasn’t there, leaving the markets vulnerable to fresh selling following Monday’s crop report.

·         Soymeal basis is bouncing on the break in futures, as upfront demand remains strong.

·         Index fund portfolio rebalancing remains a problem, primarily for the beef complex, through Wednesday.

·         Corn futures are 7 cents lower after failing to take out Monday’s highs with favorable growing weather in South America.

·         Soybeans are 2 cents lower, with soymeal $1.90 lower on weakening chart signals ahead of the South American harvest.

·         Chicago wheat is fractionally higher, while KC is 1 cent lower and Minneapolis 2 cents higher as the food grain looks for direction.

·         February live cattle are down $1.05 per cwt on continued fund selling, while the deferred contracts are supported a bit better.

·         Feeder cattle are down $1.00 to $1.40 on bearish chart signals.

·         Lean hogs are down $0.85 to $0.95 on bearish chart signals. Cash hogs are steady to 50 cents weaker, while product prices are modestly firmer this morning.

 

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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