Home Market Market Watch Midday Update

Midday Update



Midday Update

·         The dollar broke hard early this morning after data showed that retail sales dropped 0.3% in June, down from Wall Street expectations of a gain of 0.3%. Furthermore, retail sales gains were downgraded to 1.0% for May, down from the originally reported 1.2%. the disappointing data lowers the odds of the Federal Reserve raising interest rates, resulting in the weaker dollar in global currency trade, although the dollar has now recovered much of its losses.

·         Egypt purchased 8.6 million bushels of wheat this morning for late August delivery. All of the wheat came from either Russia or Romania, which remains priced well-below U.S. levels. The average price for the wheat including cost and freight was $5.72 per bushel.

·         Corn futures are 9 cents weaker at midday after failing to sustain overnight gains in an over-bought condition. As is typical in wet years, traders are struggling to believe reports of problems amid “better-than-average” crop ratings from USDA.

·         Soybean futures are down 2 cents, garnering some support from corn/soybean spreads, but generally weaker after failing to hold a move to new highs earlier in the session.

·         Wheat futures are down 5 cents in Chicago, down 7 cents in KC and down 3 cents in MN on weak demand.

·         Live cattle futures are 40 to 60 cents  higher on a technical bounce this morning as product prices firm modestly, but in thin volume.

·         Feeder cattle are $2.70 to $3.05 higher on cheap corn and firm fat cattle prices.

·         Lean hog futures are roughly $2.50 higher on technical buying following Monday’s reversal, with August lean hogs close to testing last week’s highs.


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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