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Midday Update



Midday Update

·         Recent heavy rains in the Southern Plains have all but eliminated drought designations from the region. You can view the Drought Monitor here.

·         Money flow actually reversed back into the broader commodity complex, providing a lift for grain and oilseed prices this morning when April pending house sales came in at 3.4%, beating expectations of 0.8% over the previous month.

·         Crude oil stocks fell 2.8 million barrels in the week ending May 22, essentially matching trade expectations of a 2.7 million-barrel decline. Stocks are still at their highest level for the week of the past 80 years of records.

·         The Department of Energy reports that ethanol stocks slipped to 20.1 million barrels in the week ending May 22, versus 20.4 million the previous week and 17.5 million the previous year.

·         Ethanol production rose to 969K barrels per day in the week ending May 22, up from 958K the previous week and up from 927K barrels per day in the same week last year.

·         Egypt bought 8.8 million bushels of wheat this morning for early July shipment; 3 cargoes from Russia and 1 from Romania.

·         Corn futures are bouncing 3 cents as traders square positions just above contract lows ahead of the end of the month.

·         Soybean futures are down 3 cent; down 6 in new-crop; as soymeal premiums break.

·         Wheat futures are modestly mixed.

·         Feeder cattle futures surged $3.30 per cwt to nearly 5-month highs on chart buying and support from a strong cash market on cheap corn and lush pastures.

·         Live cattle futures are up $1.50 to $2 on strength in the feeder cattle market. Product prices are lower on slow movement this morning.

·         Lean hog futures are up $0.50 to $1 on follow-through buying; the cash market is mostly steady, while the product market is breaking lower this morning.


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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