Home Market Market Watch Midday Update

Midday Update



Midday Update

·         This morning’s ADP report showed that the private sector created 169K jobs in April, which was far below Wall Street’s expectations of 205K.

·         The dollar plummeted nearly 1,200 points to its lowest level since early February on the news, sending money flowing into the broader commodity complex.

·         Crude oil rallied to $62.58, its highest level since December 10, after the Department of Energy reported that crude oil stocks fell 3.9 million barrels in the week ending May 1. That still leaves crude oil stocks at record levels for this week of the year, but it was the first decline in a very long time.

·         Ethanol Stocks remained largely unchanged in week ending May 1 at 20.8 million barrels.

·         Ethanol production fell to 887K barrels per day during the week, down from 921K the previous week and down from 894K in the same week last year.

·         The Wheat Quality Council tour on Day Two does occasionally find good fields, but it is again finding many more dramatically impacted by drought and winterkill.

·         Stocks Canada reported that all-wheat stocks were at 16.738 million metric tons on March 31, down 25% from the previous year as the cheap Canadian dollar has favored active exports.

·         Egypt tendered to buy 25,000 metric tons of soybean oil on the international market, along with 15,000 tons of sunflower oil, adding strength to soybean oil prices.

·         Corn futures are up 4 cents on the above, combined with a friendly reversal on Tuesday.

·         Soybean futures are 2 cents higher on positive money flow, with gains limited by reports that the Rosario port strike has been postponed while the two sides talk.

·         Wheat futures are up 13 cents at all three exchanges on positive money flow, wheat tour results and the Stats Canada data encouraging covering of massive short positions.

·         Live cattle futures are 45 to 65 cents lower as prices consolidate largely within the previous day’s trading range while waiting for cash trade. Packers are said to be silent, while feeders offer $163 in the Plains.

·         Feeder cattle are 10 to 55 cents lower following the lead as cash prices soften.

·         Lean hog futures continue higher, following the trend of cash and product prices. Today’s cash market is mostly steady to $1 higher; up to $2 higher in Ohio.


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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