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Closing Comments

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Closing Comments – Holiday Trade Edition through Dec 31st

People still feeling the effects from the latest winter storm as power remains out for some residents in various areas. The U.S. Coast Guard has closed all vessel traffic along the Mississippi River due to high water in the region and Gulf bids have firmed as a result. St. Louis is expected to crest on Thursday but were expected to remain closed into next week before it re-opens. There has also been a media report of a levee overtopping around West Alton, Missouri along the Mississippi River and prompted the immediate evacuation of town residents this morning.
Corn was able to recover today after making a new contract low, and putting in a nice reversal bar off the bottom for at least the short term. Maybe hard to see much more selling pressure going into the end of the year. Commitment of traders report estimated a net short corn position of roughly 135k contracts by fund managers heading into today. December Corn barges were bid +.45 up .01 today and Jan also +.45 up .02.
Soybeans were up in the overnight markets by as much as .10, possibly catching a story that a vessel loaded with soybeans had exploded in Paranagua and that there could be more complications or delays in soybean or soy product loading. It was also shortly later reported that there was no damage or any expected delays at the loading docks and operations were to continue, ending the brief rally early. Bids at the gulf for December bean barges were steady while February were up .03 at +.59 over. Commitment of traders report showed managed money through last Tuesday’s trade net short -31.6k contracts.
Wheat prices lead the grain complex today with concerns still lingering over soft red winter wheat regions. A small spread reversal for the KC/Chicago may be seen in the near term as more concern is placed in the Midwest compared to the plains. Commitment of traders estimated funds to be around 106k contracts net short, very close to a record short position.
Livestock markets have gone relatively quiet the last couple of days compared to the last few weeks as the cold wet weather has been priced in now and await any further direction in forecasts or news. We have not seen any cash trade the last few sessions hit any of the headlines and has also been quiet on that front.

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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