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Closing Comments

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Closing Comments

Corn was lacking any bullish news and end user buying seems content on holding off with big supplies ahead and plenty of old crop left to move as well.  Corn closed down .09 ½, but is still within its trading range of 3.45 and 3.15.  Early yield reports have shown a good crop against longer term averages, but coming up a little short in the good areas with highly variable yields in others.  So far this week, price has solely been focused on production from USDA numbers by traders but will shift as more harvest progress picks up throughout the week and rumors fly with results that will determine near term direction. 

 

Soybeans have moved back towards resistance on new crop charts and prices are still reeling from the big USDA yield.  Again, quiet on the news wires today meant we must look to yesterday for direction and as we wait to find out if the big bean plants will produce big yields or not.  A much stronger U.S. dollar put pressure on the general commodity markets and soybean complex felt the brunt of that.  Soybeans closed down .20 in the November contract and look to target 9.00-9.15 if last weeks’ low of 9.37 is triggered.  

 

Wheat closed down around .08 following other grain markets and commodities.  Russian has threatened to ban Egyptian citrus imports, which could trigger a trade dispute over exports of Russian wheat to the world’s largest importer of the grain.  I believe we have some available if they want it!!  The U.S. remains at a discount and cheapest source to buy corn, beans, and wheat and will help support grains prices longer term.

 

Cattle markets were not immune to the negative direction of commodities and stopped short of resistance areas.  The general negative direction today played the biggest culprit in putting in retracements to the recent rallies in cattle markets.        

 

Hogs prices closed almost limit down in more than a couple of contracts.  Once prices gave way to yesterday’s low, the selling continued quickly and the futures will now try and find a new bottom in the short term.  Cooler weather has allowed heavier weights to continue to come in, and forecasts look promising as well.  Profitable packer margins give them an incentive to process as much as possible which in turn has increased the amounts of product available.

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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