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Closing Comments



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Closing Comments

Corn traded higher today closing near the session high at 3.68 ½. This morning, the FAS announced that U.S. exporters sold two cargoes (128k tonnes) of corn to Japan. South American corn cash prices have drifted lower this week. Argentine corn is now offered at parity with U.S. corn for March. Ag Resource fully expects solid weekly corn sales throughout February, but at its conclusion, world trade and price direction will hinge upon South American crop size. EIA’s weekly energy report is expected to include another slight reduction in U.S. ethanol production which is more seasonal than anything else. Crude, gasoline and ethanol inventories continue to rise.


Soybeans also traded slightly higher today closing at 10.42 ¾. No bean sales were included in the FAS announcement this morning. The Brazilian cash soybean offers were firmer this morning as near-record exports look to easily absorb early harvested supply. U.S. Gulf beans are still the world’s low cost origin through April, and until there are signs of declining basis in brazil, we doubt breaks will be lasting in the soy complex.


Wheat followed the positive trend for grains today closing higher also. In the short term, strength in the Black Sea cash markets offers support to the rest of the world. While wheat prices remain pressured by ample global supplies, CBOT March soft red winter wheat WH7 was up 2-1/2 cents at $4.25 a bushel. MGEX spring wheat for March delivery 1MWEH7 was down 2-3/4 cents at $5.52-1/2 a bushel while March K.C. hard red winter wheat futures KWH7 dropped 1-3/4 cents to $4.34 a bushel.


Live Cattle futures on the Chicago Mercantile Exchange closed steady to narrowly mixed after investors adjusted positions while waiting for cash cattle to change hands this week. February live cattle closed -0.475 cent per pound lower at 116.425, April was unchanged at 115.625 and June closed +0.175 cent to 105.825 cents per pound.


Hogs surged to a new seven month high on the Chicago Mercantile Exchange today (71.425 cents), and closed +1.025 cents per pound at 71.350. The new high is thought to be fueled by firmer cash and wholesale pork values.





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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