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Midday Update



Midday Update

·         Egypt canceled its tender to buy U.S. wheat this morning, stating our prices were simply too high. It says it will re-issue the tender to buy from cheaper sources. Previous tenders have revealed that U.S. bids were $70 to $1.00 per bushel too high.

·         March options expire on Friday. Open interest data suggests that attractive strike prices ahead of expiration are $10 followed by $9.80 for soybeans and $3.80 for corn.

·         There is little change in the South American weather outlook that supported corn and soybean prices Tuesday, with wet weather expected to delay field work in central and northwestern Brazil through the week with just a brief window of opportunity next week.

·         Commodity Weather Group is monitoring sea surface temperatures in key locations for indications of spring and summer weather patterns. It currently puts the odds of a hot summer for crops at 39%, down 2 points from the previous week as sea surface temperatures warm in the tropical Pacific and off the coast of Baha California.

·         The dollar is strong today, with money flowing out of the broader commodity sector.

·         Corn futures are down 6 on the broader sell-off.

·         Soymeal is down $4.90 per ton, while soybeans are down 15 cents.

·         Wheat is down 10 cents in Chicago, down 13 in KC and down 7 in MN, with selling increasing dramatically after the Egyptian tender cancel.

·         Live cattle futures are up 10 to 65 cents on ideas that this week’s cash trade will be steady to firm. Boxed beef prices are $1.19 higher for Choice and $3.43 higher for Select cuts at mid-morning on routine movement.

·         Feeder cattle futures are 45 to 85 cents higher on the fat cattle strength and cheaper corn.

·         Lean hog futures are mixed amid a mostly steady cash market today. Product prices were modestly higher.


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

Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK involved in trading futures and or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. This information is provided freely and is NOT in the capacity of a trading advisor. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. Information provided is not to be construed as an offer to sell or solicitation to buy any commodity or security named herein.

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