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Closing Comments

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Closing Comments

The US dollar couldn’t hold on to early gains as information showing consumer prices rose less than expected cast doubt for now on the Fed’s ability to continue it’s expected pace of increased interest rates this year.

Corn

Corn recovers early losses to close green across the months on short covering support and Brazil weather concerns.
Export sales for corn came in at the upper end of the expectations at 49 mln bushels, which coupled with continued dry concerns in Brazil and the short fund position provided support corn futures into the close.
May corn closed at 3.74, the highest daily close since February 3rd. The highest daily close of 2016 was 377 ½ on February 2nd.

Soybeans

Soybeans lower on profit taking after posting eight month highs.
A lessening on concerns in South American threats along with profit taking after the fund buying spree had prices lower on fresh farmer selling of old and new crop soybeans.
Export sales for soybeans came in at the upper end of the expectation at 17 mln bushels.
Wet weather continues to be problematic to the Argentine soybean harvest but some expectations of a lessening of the severity of rain soon.
March NOPA crush estimate will be out tomorrow. The trade is expecting 156.25 mln bu, up 7% from February but below a year ago at 162.8 mln.
Funds were reported sellers of 8,000 soybean contracts.

Wheat

Wheat closes mixed despite the anticipation of relief rains for the Plains states.
Heavy rainfall is anticipated to replenish the driest areas of the hard red winter wheat belt over the weekend – with some areas anticipating more than 6 inches.
Strategie Grains cut their EU ending soft wheat stocks estimate, down 1.0 mln mt in 15/16 to 15.6 mln and down 1.2 mln for 16/17 to 13.2 mln mt.

Livestock

Cattle finish the week strong on good demand while strength in hogs wains.
Live cattle were lower on fund selling while bear spreading was active as traders sold April and bought June contracts.
This morning’s wholesale choice price rose $1.81 per cwt while select was up $2.43. Solid wholesale prices and better packer margins could provide support for cash cattle tomorrow. So far a few have moved in Nebraska at $135 to $136 per cwt, close to last week’s trade.
Peoria hogs traded steady at $38. This morning wholesale pork price dropped 95 cents per cwt. April expired at noon today up .275 at 66.800 nearly in line with the index.

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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