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Closing Comments



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Closing Comments

Corn found support from short-covering and wheat. USDA reminded the market that there is plenty of corn left to harvest, pegging progress at 15%. Corn so far has been able to hold up above the September 14th low of 3.26 ½. On the upside, Dec corn still has to prove it can close above 3.42 to change the market tone.


Soybeans scored an impressive turnaround today after descending into fresh lows on the move. USDA reported a sale of 120,000 mt of soybeans to China. End user buying and funds defending their long position seem to be keeping the market in consolidation mode for now. Some support is seen ahead of Friday’s stocks report for fear of a bullish surprise. That being said, the yields are impressive so far and supply will likely keep rallies in check. Harvest progress at 10% is just behind the 5 yr avg of 13%.


Wheat was higher today on rain causing quality concerns in Canada and Australia as well as a bit of a pickup in buying activity. Hard Red Winter is getting more competitive on the global market. The world isn’t short on wheat, but high quality wheat isn’t plentiful which should be supportive to KC and Minnie longer term. Morocco tendered for another of US SRW.


Cattle fell apart on technical selling and sell-stops below last Friday’s swing low. Closing limit down. Cash trade bids are showing up in TX/KS at $104 vs $110 asking. Last week Plains cattle brought $104 to $107. Trade is holding out hope that profitable packer margins and a seasonal uptick in demand can provide support, but for now the charts have all the momentum down.


Hogs could not hold early strength as supply pressure put nearby contracts into fresh lows. Lower cash prices are continuing to chip away at the lean index however there is market hope for National Pork month to help to mop up some of the excess supply.

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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