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Closing Comments

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Closing Comments

 

Old crop corn prices closed up .01 ¾ today.  Corn export sales beat expectations this morning with 61.3 million bushels sold, showing a lot of buying interest at these prices.  Corn closing at the 20day moving average will also have fund managers wanting to clean up sold positions ahead of the end of the year, and could support a decent bounce. 

 

Soybeans closed down .06 ¼ today.  Fund liquidation over the last couple of weeks  still the driver in lower soybean futures.  Export sales this week of 64.0 million bushels were also above trade expectations but the pace still lacks the forecasted USDA projection.  The United States is still the cheapest origin of soybeans, corn, and wheat at the moment so the pace could pick up. 

 

After a mixed start to the day, Chicago wheat closed up 3 ½.  Open interest in Chicago went down 3,575 contracts today, and the average estimate for today’s wheat export sales is 450,000 to 650,000 tones. In world news, Germany’s winter wheat area fell by nearly 5.0% to 7.36 mln acres due to unfavorable weather conditions.

 

Live Cattle closed +.225 today. With tomorrow’s cattle on feed report, the trade is looking for significant expansion in the cattle industry. As a result, the market seems reluctant to move too far in either direction until the report is released at 11:00 AM central time.

 

Hogs closed + .200. A decline in average hog weights for the second straight week in thought to be the fundamental reason behind today’s gains. With the hogs and pigs report tomorrow, traders are looking for all hogs and pigs on Dec 1 to be about 2% above year-ago levels.

 

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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