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Midday Update

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Midday Update

·         Global economic problems remain a major concern of traders, with the equities getting hit the hardest this morning. The dollar is at one-month lows this morning on ideas the Fed will have to delay its first rate hike in nearly a decade. Some money is starting to come back into the broader commodity sector, although rallies are being sold.

·         Export sales for the week ending August 13 totaled 33.8 million bushels of corn, 2.2 million bushels of grain sorghum, 30.5 million bushels of soybeans and 11.6 million bushels of wheat (poor).

·         USDA’s daily export reporting system today indicated that Mexico purchased another 7.6 million bushels of new-crop corn in the past 24 hours.

·         Corn futures continue to creep higher. End users fear that the crop may not be as big as indicated by USDA. Preliminary results from the Pro Farmer crop tour would seem to support that sentiment. Futures are 2 to 3 cents higher this morning.

·         November soybeans hit a new contract low of $8.88 overnight, but that’s when bargain-hunter buying emerged, with good demand from Midwest processors who still have orders to fill. November soybeans are 9 cents higher, but the lead September contract is 12 cents higher on good demand.

·         Wheat futures are 9 cents higher in Chicago, 5 cents higher in KC and 3 cents higher in MN. The bounce comes after key support held on the charts Wednesday as the dollar falls to one-month lows, but demand remains very weak for a large supply.

·         Live cattle futures are $0.90 to $1.05 higher on a technical bounce after yesterday’s big sell-off. Cash trade was active in Nebraska and Iowa yesterday afternoon at mostly $145 to $149 per cwt on a live basis and $232 to $234 on a dressed basis. Bids and asks are still between $146 and $150 in Texas and Kansas where very few cattle have moved this week. Boxed beef prices are mixed in slow trade, with Choice up $0.87 and Select down $0.53.

·         Feeder cattle are steady to 50 cents weaker in the nearby contracts and steady to 70 cents higher in the deferred contracts, while keeping an eye on corn prices.

·         Lean hog futures are $0.50 to $1.10 lower this morning after this week’s rally failed yet again. The cash market is mostly steady, although Illinois markets are steady to 50 cents weaker. The composite product price is down $1.16 to $87.11 per cwt.

 

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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