↑ = Supportive to the Market | ↓ = Adds Pressure to the Market | ↔ = Neutral to the Market
Corn – Ethanol expected slightly strong around 1100K, open interest continues to fall drastically
↑ Ethanol will be expected slightly strong today around 1100K, a moderate level is still around 1000K
↔ Open interest has been falling drastically the last 3 trading days, some of that has to do with Dec
option expiration but it has gone beyond that as well, generally traders are leaving the corn market
↔ If funds choose to leave the corn market that would result in buying as they are short 186K
↔ March is maintaining very close to fair value around 475, also a level that may improve exports
↔ The last 2 weeks have seen better exports, tomorrow trade will expect the same close to 1500K
Beans – China bought 123K yesterday, small but raises hopes that China could buy for days in a row
↑ A small 8 AM sale to China yesterday raises hopes they might return to buyers for a few days in a row
↓ 1 – 5 day increased rains for ARG, also seeing some rains move in for BRA on that map now
↔ 6 – 10 day returns to just light rains for ARG, light/moderate for BRA
↔ Monday’s trade showed that active support is still seen near 1300 with a low posted of 1323 ½
↔ China buying of US beans still appears to be “fill the gap” type of buying as US beans are higher
priced than both ARG/BRA not only right now but for the next 4 months as well
Wheat – There is talk of improved HRW exports, we will see if this appears on tomorrow’s report
↑ There is talk that US HRW wheat has recently seen improved exports, we will see if this is on
tomorrow’s weekly report to help improve over the last 2 weeks of 176K and 197K
↔ Overseas stopped its slide yesterday along with US wheat, overseas has not bounced much yet
↑ There appears a light amount of macro buying seen this week with energies, metals, bonds and a few
other markets seeing improved buying, wheat is known to sometimes get caught up in macro buying
Cattle – Monday feeder traders panicked over cash, yesterday eased that panic, may see sideways
↔ Yesterday’s PM BB was choice +0.92 select -1.45 packer BE at 179.24, packer cushion $2.26
↔ Monday feeder traders panicked over the thought that cash feeders may trade as much as $10
lower, yesterday traders saw it down only around $3, less to panic over but still lower on the week
↔ BB continues choppy and mostly sideways, packer profits near $2 are better than what they were
but not at a level we can expect sudden improvements in cash bids
↔ Now that we have been through panic selling and a fast recovery we may go back to
sideways/slower trade waiting to see what first cash bids are for fat cattle