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Closing Comments

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Closing Comments

Corn was under pressure for much of today’s trade on a slowdown in fund short covering and harvest hedge pressure. Weekly export sales came in at the top end of expectations at 1.023 mln mt. Year to date has corn export sales 89% above a year ago.  The December contract did trade to its highest level since July 19, but couldn’t hold on to early gains. Support should be seen in the 3.46 two 3.48 area while overhead resistance zone 3.60 to 3.75.

 

Soybeans saw mixed trade today, supported by great exports and strong Chinese crush margin but held back by the huge supply and tomorrow’s November option expiration. Weekly export sales were close to double the trade expectations at 2.008 mln mt along with soy oil and meal higher than expected. Soybean sales are 36% above last year YTD. The USDA also reported a flash sale of 192,000 soybeans to ‘unknown.’ November has been trading either side of the 200 day moving average the last four days. The most actively traded Nov put strikes today were the 980 and 960 puts. Upside resistance will be solid between 10.00 and 10.20. The key to soybeans will be soy meal which has been resistant to going lower but has yet to confirm it can go higher.

 

Winter Wheat closed lower, however KC gained on Chicago for the fourth consecutive day. Wheat exports were within trade expectations at 513,800 mt. Minneapolis wheat continues to be the most resilient in the complex off slow harvest completion in Canada. Look for Chicago to find Dec support in the 4.10-4.12 area.

 

Cattle futures closed limit up today on short-covering and better cash prices as the week winds down – indications of $3 to $4 higher trade vs last week. Tomorrow’s Cattle on Feed report added to the tone for squaring up positions.

 

Hog futures saw generally quiet trade today with strength limited by weaker cash and wholesale pork prices. Plants in the East are back up and running following the weather interruptions, but a backlog of supply will take some time to work through.

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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