· At midday, corn is +2 ½, beans +9, Chicago wheat -1, KC Wheat +0, Dec Cattle -.82, Jan Feeders -3.00, Dec Hogs +.90, the dollar -.245, and crude -.03.
· Corn is fighting with a descending line of resistance that has halted the market ever since our July highs, with a close through the 3.76 – 3.78 area in March needed to expect higher prices out of the current bearish trend.
· Traders are still sifting through the implications of yesterday’s RFS release, with corn trading both sides of unchanged today as the announcement is too little for corn lobbyists, and too much for big oil.
· Short covering has sent beans through not only strong resistance around the 8.85 area, but is currently trading through several lines of converging resistance at 8.90. A close through here would signal that the current rally could have further to go.
· Encouragingly for beans, meal is finally participating today, up around $5.00 a ton in Jan.
· Cash traders on Tuesday said that 100,000 mt of wheat was bought by Jordan today, with a shipment schedule of last half Feb, first half March.
· Cattle continue to slip as negative influence of cash market and lack of packer interest weighs on prices.
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.