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Closing Comments

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Closing Comments

 

Corn found support in a sharp DOW recovery and traders positioning themselves ahead of the Thursday USDA report, +4 ¾ (Mar). Typically the February Report is not a big market mover, and a modest reaction would be expected. All the focus will be on South American weather once again after the Report is behind us. The USDA reported two export sales of corn today of 120K MT to Japan and 105K MT to “unknown” destination.

 

Soybeans had a whiplash turnaround from the last several days, +16 ½ (Mar). As with corn, uncertainty of South American weather, an impending USDA Report on Thursday, and a comeback of the equity markets. A couple things to watch for in the Report will be changes in the South American crop production as well as the U.S. balance sheet changes due to decreased bean exports but increased crush rate. This against a backdrop of solid domestic soymeal and DDG demand.

 

Wheat followed along with the other grains, with gains across both winter and spring wheat complexes. On the winter wheats, Chicago SRW finished +6 while Kansas City HRW ended +7 ¼ (Mar). The U.S. needs to become more competitive in the aggressive global marketplace, as the Black Sea has been dominating at will. The drought across the Central Plains is expected to continue over the next two weeks. Minneapolis spring wheat closed the session at +6 ½ (Mar).

 

Live Cattle bled red along with pork, -.900 (April). The recent downfall of the stock market was likely influential, combined with short-term supply and demand fundamentals. Consumer demand has been strong, but that was doubt today with outside market turmoil.

 

Hogs fell lower with cattle, as large short-term supplies combined with outside market uncertainty won the day, -1.900 (April). The pork cut-out and bellies were both down sharply after the close yesterday and will likely drag down the cash market to some extent.

 

USDA Report this Thursday at 11am, including Crop Production and Supply/Demand.

 

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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