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Closing Comments

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Closing Comments

Corn managed to continue its upward trend today and making another new high since last summer.  Brazil may have more problems coming this week with the second corn crop, as a strong frost has come into the forecasts for Wednesday and Thursday.  The issue approaches just ahead of their harvest and adds on to the already stressed crop.  The good to excellent categories in corn showing a similar start to last year so far, put the pressure on in the overnights and kept the late day rally in check also.

Soybeans rebounded just ahead of the noon hour after trading mostly sideways in the morning.  Perking things up, was the confirmed sale of soybeans to China of 180,000 mt.  The rumors were there last week that they may look to make some purchases to replace local auctions and were confirmed today.  More cuts to South America’s crop are expected by the average trade guesses for Friday’s monthly USDA crop report and helped support prices as well.

Wheat traded higher again today as the Kansas City class keeps marching to the 200 day moving average.  It appears to want line up with that resistance area, USDA monthly crop report and harvest all want to come together before a change in direction would want to happen or if wheat in general can move a lot higher.  The Chicago market has lead the way and has been trying to maintain a double top formation from the swing high back in April, also awaiting the crop report.

Cattle looked stronger in June since wholesale beef values improved and increased cattle supplies in the coming weeks put pressure on the back months.  Cash cattle bids in Texas showed up around $125, against offers of $130 to $132 and no sales taking place.

Hogs had seen some small profit taking after the large move higher over the last 6-8 trading sessions.  The Hotter weather has been priced in and forecast do look to cool down a little after the weekend to more manageable levels.

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.

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