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Closing Comments

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Closing Comments

Corn closed out today and the week at its highest price since April of 2014 on current conditions getting drier and concerns that conditions could persist into next week.    Weather models do look to cool of a little bit towards the end of next week, but there still is not much rain expected. The market is looking for condition ratings to decline next week in corn, and helped the market close on the highs.  A reversal in the US dollar and crude oil market from yesterday helped push more money flow into commodities in general today.  Some concerns have been eased over Britain leaving the European Union, in the sense that it could take over 2 years for the process, if it does at all.  The vote is expected next Thursday.

Soybeans reversed yesterday losses with processor bids and the board crush firming up today.  There were large sales this morning announced to China and other unknown destinations reported that also helped push things right off the open.  It appears China is replacing their reserves, evident by the large amount of exports announced this week and large amount expected next week as well.  The trend in soybeans and corn remains higher and will until we start seeing some more rains in the forecast, or a change in the recent demand that has appeared.

Wheat prices benefited by the rise in corn and soybean futures.  Fundamentally, wheat would be struggling to rally if not for the latter.  Exports could see another strong number next week because we are competitive and would offer some more support prices on its own merit.  The reversal today in wheat futures would offer some technical support now in the charts, and if the other grains go higher then so will wheat.   

Live Cattle held support levels today in the trading session.  No cash cattle trades were announced today but the trend for the week has been a steady decline.  Weather forecasts and hot temperatures have yet to have a big impact on prices but will have to play its part eventually.  Feeder cattle did break through support this week and carries new momentum lower.

Hogs have rallied as cattle have been selling off.  Optimism for pork producers has been with export demand and China as the feature of the purchases.  The USDA is expecting demand to rise by 8% in the second half of this year. 

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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