Home Market Market Watch Midday Update

Midday Update



Midday Update

·         Federal Reserve meets to discuss its monetary policy on Tuesday and Wednesday. The statement it releases midday Wednesday could have significant implications for money flow either in or out of the broader commodity sector.

·         Malaysian palm oil prices drop to 5-month low on declining demand, weighing on soyoil prices.

·         Upfront demand for soymeal remains strong ahead of South American harvest.

·         Rains over the next 10 days are expected to continue to fill in dry areas of Brazil, but we’ve probably taken the top off what could have been a monster crop. Even so, it should still be larger than underlying demand.

·         Export shipments for the week ending January 22 were 34.9 million bushels of corn (good), 11.9 million bushels of grain sorghum (strong), 55.9 million bushels of soybeans (strong) and 9.7 million bushels of wheat.

·         Corn futures are 1-cent lower at midday.

·         Soybean futures are 7 cents higher with soymeal up $6.20 per ton on good export demand.

·         Wheat is down 5 cents in Chicago, 7 cents in KC and down 4 cents in Minneapolis.

·         March feeder cattle are down $5.35 on massive fund selling amid tepid demand at the sale barn.

·         Live cattle are down $1.45 to $1.70 on weakness in the feeder cattle market and ongoing fund selling. The boxed beef market is weaker again this morning on slow movement.

·         Lean hog futures are up $1.65 to $2.15 on short-covering after the market reached oversold conditions. Product prices are bouncing on slow movement at midday, but the cash market is generally $1 lower once again.


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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Arlan Suderman | Senior Market Analyst
WATER STREET ADVISORY® | www.waterstreet.org
(316) 729-4599 | asuderman@waterstreet.org

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