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Midday Update



Midday Update

·         The Department of Energy reports that ethanol stocks dropped to 18.6 million barrels in the week ending September 19, down from 18.8 million the previous week, but up from 15.6 million the previous year.

·         The drop came as ethanol production fell to 889K barrels per day during the week, versus 931K the previous week and 832K the previous year.

·         The euro fell again today on weak economic data, helping to propel the dollar to new four-year highs. The dollar is nearing critical chart trend line resistance off the 2009 and 2010 highs. A strong dollar tends to lead fund managers to be short (sold) the commodity sector.

·         Ironically, the commodity sector is bouncing a bit this morning after reaching oversold conditions in recent days. The reversed money flow into the commodity sector today comes as the dollar reaches major chart resistance, triggering some bargain-buying in the commodities.

·         Corn is up 4 cents on the above.

·         Soybeans are up 2-3 cents on the above.

·         Wheat is up 7 in Chicago, up 5 in KC and up 7 in MN as wheat has value at current price levels.

·         Live cattle futures are mixed while the market consolidates above chart support while waiting for direction from the cash market. Boxed beef movement was very strong at mid-morning at 169 loads on modestly lower prices.

·         Feeder cattle futures are generally steady to 55 cents lower on higher corn prices.

·         Lean hog futures are mixed as prices consolidate above chart support ahead of Friday’s USDA quarterly hogs and pigs report. Product movement at midday was routine for a Wednesday at best, with prices soft.


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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