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Midday Update



Midday Update

·         Soymeal basis remains unchanged across the Midwest, with few signs of tightness easing on the cash market yet.

·         Open interest dropped on Wednesday’s rally, suggesting it had more to do with short-covering than fresh long (bought) positions.

·         Crude oil is at a three-year low this morning. Dropping below $74.95 would put it at a four-year low.

·         Ethanol stocks jumped to 17.7 million barrels in the week ending November 7, up from 17.2 million the previous week and up from 15.2 million barrels in the same week last year.

·         Ethanol production rose to 946K barrels per day in the week ending November 7, up from 929K the previous week and up from 927K barrels per day the previous year.

·         Corn futures are up 7 cents on improving chart signals and sluggish farmer sales, with help from strength in soymeal/soybeans.

·         Soymeal futures are up $4.20 per ton, supporting soybeans up 10 cents.

·         Wheat futures are up 11 cents in Chicago, 8 cents in KC and 7 cents in MN on cold weather concerns.

·         Bull spreading is supporting the live cattle futures market on ideas of steady to higher cash trade this week, with nearby contracts $0.80 to $1.65 higher.

·         Feeder cattle futures are following, with most nearby contracts up $1.45, while the November contract is up 7-1/2 cents.

·         Lean hog futures are 50 to 60 cents higher on a steady cash market and positive chart signals as the product market shows signs of firming, although the composite price was down 19 cents this morning.


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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