Home Market Market Watch Midday Update

Midday Update



Midday Update

* Money flow has continued to move into the broader commodity sector this morning, providing underlying support for the grain and oilseed markets. The dollar has erased its earlier losses and is modestly higher at this hour, but the major commodity indices continue to see good support after gapping higher early this morning and breaking above areas of chart resistance.

* USDA reports that export shipments in the week ending October 1 totaled 18.5 million bushels of corn (soft), 11.7 million bushels of grain sorghum (good), 41.2 million bushels of soybeans (good) and 20.5 million bushels of wheat (soft).

* Commodity Weather Group notes that 60% of Ukraine and 35% of Russian wheat has “significant moisture shortages cutting back crop development.” It goes on to say that nearly half of the wheat in the region has problems becoming established ahead of dormancy due to cold dry conditions, while 20% is having trouble merely germinating.

* Corn futures are trading 2 cents higher supported by mildly positive chart signals and money flowing into the broader commodity indices of which corn is a part amid expectations of a corn yield drop on Friday when USDA releases its crop report.

* Soybean futures are 9 cent higher as they find buying interest near the bottom of the recent predominant trading range, get a boost from support in the broader commodity sector and see strong export shipments.

* Wheat futures are a penny higher in firm consolidation amid broader market support.

* Live cattle futures are 50 cents weaker this morning on additional losses in the product market and after last week’s weak cash trade.

* Feeder cattle are steady to 30 cents weaker, following the fats.

* Lean hog futures are steady to 60 cents weaker and are testing key chart support for the December contract. Cash hogs are mostly steady and product prices are firmer again this morning, but on slow volume.

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(r) | 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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