Home Market Market Watch Midday Update

Midday Update



Midday Update

·         Comments made at this week’s USDA Outlook Forum suggests that economists released such a low soybean acreage estimate because they simply couldn’t fathom farmers increasing soybeans when the soybean/corn price ratio had fallen so much since last year.

·         Export sales for the week ending February 12 totaled 36.7 million old- & 5.6 million new-crop bushels of corn, 18.6 million old- and 4.3 million new-crop soybean bushels, 3.5 million grain sorghum bushels and 11.2 million wheat bushels (poor).

·         Soymeal sales during the week at 316.6K metric tons were the largest since the first week of October, with actual shipments were even stronger at 384.8K tons.

·         March options expire today, with attractive strike prices at $10 for soybeans and $3.80 for corn.

·         Grain and oilseed prices are under pressure from USDA’s relatively large 2015-16 stocks projections and from weak export sales.

·         A government arbiter warns that negotiations will be moved to Washington, D.C. if a settlement is not reached in the West Coast port slowdown by the end of the day today.

·         Cash hogs are steady to $1 higher today.

·         Corn futures are 4 cents lower, trading near $3.85.

·         Soybeans are 7 cents lower, trading near $10.00

·         Wheat futures are down 9 in Chicago and KC, while down 6 in MN.

·         Live cattle futures are $0.85 to $1.55 lower after erasing early gains today. Cattle-on-Feed report is this afternoon, with expectations that on-feed numbers will be near year ago levels, while January placements fall 13% below year ago levels.

·         Feeder cattle are generally $1 to $2 lower on weakness in the fat cattle market.

·         Lean hogs are steady to 90 cents higher on hopes of a West Coast settlement and firmer cash market.


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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