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Midday Update



Midday Update

·         The Department of Energy reports that ethanol stocks dropped to 18.7 million barrels in the week ending October 3, versus 18.8 million the previous week and 15.4 million the previous year.

·         Ethanol production rose to 901K barrels per day in the same week, versus 881K the previous week and 868K the previous year.

·         The dollar showed modest strength once again this morning as it continues to consolidate following Friday’s explosion higher on the monthly jobs report.

·         Overall, we’re seeing a net out-flow of money from the broader commodity sector as a result.

·         Corn and soybean traders are again starting to get cold feet, afraid that USDA will confirm bigger crops on Friday morning.

·         Forecast remains very wet for southern half of Midwest over next 10 days, while the Southern Plains are expected to get good moisture from the remnants of hurricane Simon.

·         Corn futures are fractionally higher, garnering support from excessive wet conditions in the southern belt and ideas that USDA may significantly reduce acreage on Friday.

·         Soybeans are down 9 cents as the market again begins to focus on a big U.S. crop, followed by an even larger South American crop.

·         Wheat is fractionally higher in Chicago, down 2 in KC and mixed in MN.

·         Live cattle futures are 35 to 90 cents higher and near their session high. Product prices are $2 to $3 higher again today, with boxed beef movement strong at mid-morning.

·         Feeder cattle futures are modestly mixed after reaching new highs this morning amid support from strong cash demand for light-weight cattle.

·         Lean hog futures are $0.80 to $1.25 higher, testing the top of their recent trading range. Strong product movement this morning, provides support, albeit at softer prices. Cash hogs are mostly steady on light movement.


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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