Corn closed a little lower as trading on the last day of the year was very light. Corn only traded a modest 55k contracts in the front month, and during a regular trading that number runs close to +220k contacts. Export sales this morning for corn were 27.8 million bushels and in the middle of the range, overall good. When markets open back up next week, the trade will be looking at any weather changes for South America and our own current situation with flooding along the Mississippi River. Bids at the Gulf were continuing to strengthen today, as exporters try and bring in more corn by other means other than barges from St. Louis.
Soybeans were hit with disappointing export sales today, showing 21.2 million bushels and missing the bottom end of the expected range by close to 18 million bushels. More concerns coming into focus for exports over the river closing already becoming a factor and Argentina readies their reserve supplies out to compete with the U.S. and Brazil. There was a 4.5 million bushel sale announced to China today. Again and even more so in beans, traders will be watching any changes to South American weather when the markets open the new year for direction.
The Wheat complex had the lightest volume of the major grains. Wheat was able to build on concerns over crop conditions for the delta and southern Midwest for soft red winter wheat areas again. Crop condition ratings maybe interesting Monday afternoon to see if that situation is in focus yet. For the forecasts in the next 7-8 days, the central U.S. is expected to see some sun and a little warmer temperatures to try and dry out some. Export sales for wheat this week were 14.1 million bushels and within the average trade guess.
Feeder cattle kept the momentum going higher today and cheaper corn prices maybe helping that. Caution maybe needed at these levels as the bounce has gotten back to some resistance areas now, and the Live cattle have already been hanging around the 100-day moving average this week.
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.
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.
The information contained in this e-mail message is intended only for the personal and confidential use of the recipient(s) named above. This message may be an attorney-client communication and/or work product and as such is privileged and confidential. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error and that any review, dissemination, distribution, or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail, and delete the original message. Water Street Solutions is an equal opportunity provider. Water Street Solutions is an equal opportunity employer.