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Closing Comments


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Closing Comments

Corn failed to hold on at the 200 day moving average and closed down 6.  New sale announcements did not help carry the momentum higher from the overnight despite it being the 9th announcement in the last 2 weeks.  4.9 million bushels were sold to “unknown” destination this morning.  Informa had increased their 2017 US corn planted acreage forecast from 90.15 to 90.489 mln acres.  Corn is still maintaining a recent up trend, but futures have come back into the range it has been in since October.


Soybeans ended up closing a little higher after an overall indecision type of day and considering it traded in a .17 range from last night to the close.  In the news, Informa had decreased their forecast from 88.86 million acres to 88.647 million.  The return of export business has been nice to see and there were a few new announcements this morning also.

4.4 million bushels of soybeans were sold to Mexico and another 6.4 million sold to “unknown” destination.  The Argentina weather scare has seemed to pass for the time being, but future forecasts will be watched closely.


Winter Wheat reversed the last couple of trading sessions and closed lower.  Momentum looks neutral to this point and should maintain until either a new closing high is spike in Chicago or Kansas markets or a close below the lows of last Friday happen first to change that.  No significant weather concerns in the near term for the US growing areas.


Live Cattle and feeder markets continue hanging around the high end of the charts, keeping technicals positive, but also wondering “will this breakout again”.  Livestock in general have been holding on to prices and cattle so far seem to be doing the better for now.  Certainly some profit taking in these areas are keeping some pressure on, but the arrow is still pointing up.


Hogs closed mostly higher today even as a very large kill number was announced Monday at 440k head, an increase of 2.33% from a year ago.  Margins have been slipping and top may be in place until season spring demand picks back up.    



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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