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Midday Update



Midday Update

·         The dollar is lower in profit taking, but crude oil remains near its session low and continues to trade below $50 per barrel.

·         USDA’s daily export reporting system today indicates that China bought another 4.5 million bushels of old-crop and 4.4 million bushels of new-crop soybeans.

·         Trade sources indicate that Informa pegs the corn crop at 14.425 billion bushels on a yield of 172.7 bushels, vs USDA’s latest estimate of 14.407 billion on a yield of 173.4 bushels per acre.

·         Informa reportedly pegs the soybean crop at 3.969 billion bushels on a yield of 47.6 bushels, vs USDA’s latest estimate of 3.958 billion on a yield of 47.5 bushels per acre.

·         Market response to the Informa estimates was negligible.

·         Trade chatter continues to include talk of dryness in northeastern Brazil, but gains are becoming more difficult to sustain amid the realization that corn and soybean production in South America overall still remains impressive.

·         Corn futures are mixed at this  hour as traders re-assess whether the rally is sustainable now that bullish traders have re-established their positions.

·         Soybean futures are up 3 cents in the nearby, but new-crop contracts are feeling modest pressure.

·         Wheat is 11 cents higher in Chicago and 14 cents higher in the hard wheat markets on cold weather threats combined with talk that China is shopping for protein wheat.

·         Feeder cattle remain under pressure this morning as corn prices firm and amid concerns about the ability to hold fat cattle prices at current levels. Greatest weakness is in May and beyond with some contracts down more than $4 per cwt.

·         Fat cattle prices are down $1.10 to $1.45 in the nearby and more than $2 a year out, following feeder cattle.

·         Lean hogs are $1.10 to $1.40 lower on continued weakness in the cash and product markets.


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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