Home Market Market Watch Midday Update

Midday Update



Midday Update

·         Dollar has extended gains to new 4-1/2 year highs ahead of European Central Bank meeting and as Russia’s ruble crumbles.

·         Russia introduces new regulations that could significantly curtail exports. Politically and economically it doesn’t make sense, but Russia has incentive to scare farmers into selling. Farmers there are holding tight to supplies due to the rapidly declining ruble, which is creating food inflation domestically, despite large production.

·         Crude oil prices remain weak this morning, but are well off their lows after a Saudi comment with implications about possible future production cuts.

·         USDA releases $5.6 million in grants to 220 producers of advanced biofuels, generally not considered to be corn-based ethanol.

·         Trade expects Stats Canada to raise its wheat production estimate 1% on Thursday, while bumping canola production by 4% from its previous estimate.

·         Corn prices are down 6 cents.

·         Soymeal is down $3.20 per ton as supply tightness eases. Basis jumped $15 per ton at Claypool, Indiana, but was down $2 at 3 Iowa locations.

·         Soybeans are down 14 cents, poised to test key support in the $9.95 to $10 area.

·         Wheat is down 1-cent in Chicago, 4 cents in Kansas City and 1-cent in Minneapolis.

·         Live cattle futures are $1.30 to $1.35 lower, correcting some of Monday’s gains on ideas that this week’s cash will be steady to weaker.

·         Feeder cattle are $1.875 higher in the January on cheaper corn prices and stronger sale barn demand.

·         Lean hogs are mixed. Cash hogs are mostly steady, to sometimes 50 cents weaker in the Midwest. The composite pork product price is $0.72 higher, mostly on stronger picnic and loin demand. Most other cuts are experiencing losses.


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

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