Home Market Market Watch Midday Update

Midday Update



Midday Update

·         U.S. GDP growth in the fourth quarter came in at 2.2%, unchanged from the Department of Commerce’s previous estimate, but below Wall Street expectations of 2.4% growth.

·         The Thomson Reuters/University of Michigan consumer sentiment index came in at 93.0, up from 91.2 previously and above Wall Street expectations of 92.1.

·         The dollar is steady to firm, while crude oil is recovering from break below $50 earlier this morning.

·         Corn basis is softening at processors after an uptick in producer selling this week.

·         Midwest cash hogs are mostly steady to 50 cents higher in the closely-followed Iowa/Southern Minnesota markets, while steady to 50 cents weaker in Illinois and mostly steady elsewhere.

·         Corn futures are trading 1 – 2 cents lower, but primarily inside the previous day’s trading range ahead of Tuesday’s USDA data release.

·         Soybean futures are 7 cents weaker after selling accelerated below Thursday’s lows.

·         Wheat futures are 6 cents higher in Chicago and KC, while 7 cents higher in Minneapolis in a technical bounce following big losses on Thursday.

·         Live cattle futures are trading 50 to 80 cents higher on cash optimism, but feeders and packers are still very far apart.

·         Feeder cattle futures are up to $2 higher on cash strength at the sale barn and optimism for the fat cattle market.

·         Lean hog futures are mostly steady to 20 cents weaker in consolidation ahead of this afternoon’s USDA quarterly hogs and pigs report. Bearish trade expectations are as follows:

March 27 Quarterly Hogs & Pigs


Trade Est.


percent of previous year

All hogs March 1



Kept for Breeding



Kept for Market



Pig Crop

December to February



Weight Groups

Under 50 lbs.



50 to 119 lbs.



120 to 179 lbs.



Over 180 lbs.




December to February



Farrowing Intentions

March to May



June to August



Pigs per Litter

December to February




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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