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Closing Comments


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Closing Comments

Corn finished lower on spillover from wheat weakness and profit taking on the recent run. Yesterday’s bump in corn condition ratings weighed on corn this morning and continued the concern over the large incoming supply. Mid-day commentary from the Pro Farmer tour are supporting Indiana’s expectation for above average yields but scouts are looking surprised and disappointed by the yields in both irrigated and non-irrigated checks in Nebraska due to heat and green snap damage. The trade will continue to watch for trends as the tour moves into the heart of the corn-belt the next two days. For now, Dec corn is trading in its sideways range between 3.33 and 3.45.


Soybeans were incrementally lower today but continues to trade in a consolidation zone between 10.03 and 10.17. November soybeans were able to get a second close above the trendline off the July highs but is still caught below the 10.20 resistance. Canola was higher off Stats Canada revision of production 1% lower for 2016 and significantly lower than the trade expectation. Soybean oil put in new highs on the run, but finished the day mixed – looking for more direction from world veg oil values.


Wheat suffered under global supplies as the Paris exchange traded is second steep day lower, spilling over to the US exchanges today. Stats Canada bumped their 2016 wheat production to 30.5 mln tonnes, the second largest harvest in 25 years and up 10.5% from last year. Much of the jump came from Durum wheat. This had the biggest impact on the Minneapolis contract.


Cattle continued their losing streak for the seventh day on the continued anticipation of lower cash trade this week. Cash bids surfaced in the southern Plains at $115 with the ask at $120. The trade remains tepid on good supply expectations and fear that wholesale demand may be slow.


Hogs lower on the morning’s lower cash and wholesale pork prices. This morning’s wholesale pork price slipped 19 cents while the average cash hog price in IA/MN fell $1.05 per cwt. Supply continues to outpace demand.


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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