Home Market Market Watch Midday Update

Midday Update



Midday Update

·         The dollar fell sharply to new three-month lows this morning after a series of economic reports disappointed currency traders, suggesting that a rate hike may be difficult this year.

·         There has been an increase in money flow into the broader commodity sector as a result, but it has been somewhat muted by broader economic concerns that could limit demand for commodities.

·         Crude oil has generally been higher, supported by a Department of Energy report showing that crude oil stocks fell by 2.2 million to 484.8 million barrels in the week ending May 8, which was a larger than expected cut.

·         Ethanol stocks slipped to a four-month low of 20.3 million barrels in the week ending May 8, while ethanol production rose to 912K barrels per day, up from 887K the previous week.

·         The trade expects Friday’s April crush report from the National Oilseed Processors Association to show that 147.827 million bushels were crushed by its members during the month, down from 162.8 million the previous month, but up from 132.7 million the previous year.

·         Corn futures are down 2 cents on favorable weather for the start of the growing season and on an El Nino weather pattern that tends to favor good yields in the U.S.

·         Soybean futures are up 4 cents in a technical bounce off chart support after Tuesday’s sharp losses on a bearish crop report.

·         Wheat futures are down 8 cents in Chicago, down 9 in KC and down 6 in MN on demand concerns.

·         Live cattle are up 60 to 70 cents on yet another attempt to break out the top of the market’s recent trading range on cash optimism.

·         Feeder cattle are steady to 40 cents higher, taking their lead from higher fat cattle prices and weaker corn prices.

·         Lean hog futures are largely 20 to 50 cents weaker in consolidation. The cash market is mostly steady to $1 higher. Product prices are modestly weaker.


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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