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Closing Comments

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Closing Comments

Corn closed limit down after crop conditions reported unchanged yesterday afternoon that started the selling.  Overnight and this morning brought more selling as better weather conditions in the short term have been more certain to materialize and inspired the funds to exit long positions.  It always appears to that things go down much easier than they go up, and today alone wiped out an 8 day rally from earlier this month. Corn did move back towards the top end of a support area and they acre report is next week, so corn should keep some of the expectations of acres lost into price premium ahead of June 30th

Soybeans also have seen the short term weather forecast as a reason to put in a price correction at least for now.  More sales to China and another destination were not enough to put in a bounce, but were perhaps enough from making it a worse day.  It seemed to be all about weather today in the grains, but the rebound in the US dollar and slight break in crude oil did not help.  Bids at the gulf were seen better today as the sales continue for old and new crop and will help firm things up longer term.

Wheat succumbed to the pressure in corn futures, violations in technical support areas and harvest progress.  Weather is still the story in the short term as well, but processor have been on the lookout for better quality wheat with higher protein as yields  have been good but quality lacking a bit.  It will be interesting if that translates to any new action on the futures.        

Live Cattle caught a bid and firmed up half way through the trading session.  Fed cattle in Kansas traded lightly at $117 per cwt, which was a $1 higher than early Tuesday morning.  Cattle on Feed report for Friday is expected to show 102%, placements in May at 109.2, and marketings in May at 105.0.

Hogs have traded mostly sideways the last few sessions and the nearby contracts have held up better than the deferred.  The market appears to be awaiting more technical signals while keeping a close eye on grain prices in the short term. 

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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