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Midday Update



Midday Update

·         Export sales for the week ending May 14 included 32 million old- & 3.2 million new-crop corn bushels (good), 4 old- and 10.7 million new-crop grain sorghum bushels (strong for new-crop), 6.1 million old- and 2.8 million new-crop soybean bushels (seasonal) and 7.4 million bushels of wheat (poor).

·         USDA’s daily export reporting system today confirmed that “unknown destinations” bought another 8 million bushels of U.S. corn; 6 million of the purchase was old-crop and the rest was for the 2015 crop.

·         Noted Brazilian consultant Agro Consult pegged 1st crop corn at 30.7 million metric tons, up from 29 mmt in March and 2nd crop corn (safrinha) at 51.4 mmt, up from 50.4 mmt previously, for a total of 82.1 mmt, up from USDA’s estimate of 78 mmt.

·         Agro Consult pegged Brazil’s soybean crop at 96.1 million metric tons, up from 95.8 mmt previously and up from USDA’s estimate of 94.5 mmt.

·         Corn garners strength from a weak dollar and strong wheat to benefit from a resumption of its modest short-covering rally started after USDA’s crop report. Corn futures are up 3 cents.

·         Soybeans are down 2 cents on softening demand amid large supplies.

·         Wheat futures are up 11 in Chicago, up 15 in KC and up 12 cents in Minneapolis on short-covering amid wetness concerns in the Southern Plains and dryness concerns in the Canadian Prairies and Southern Russia.

·         Live cattle futures are bouncing $0.80 to $1 on good demand and steady cash prices in the Plains.

·         Feeder cattle are up 35 cents in May and up $1.20 to $1.35 in the deferred contracts on strength in the fat cattle market and steady cash prices at the sale barn.

·         Lean hog futures are 10 to 65 cents higher on stronger product prices. Cash hogs are steady to $1 lower ahead of the holiday.


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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