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February 2011 Archive for Market Watch

RSS By: Alan Brugler, AgWeb.com

Alan Brugler is the President of Brugler Marketing & Management, and the primary analyst and advisor.

The Raging Bull Roller Coaster

Feb 25, 2011

 brulogomed

Market Watch with Alan Brugler
February 25, 2011
Roller Coaster
 
There was a lot of red ink on the screens this past week, particularly on Tuesday and Wednesday. Some of the commodities rallied back to net gains for the week, notably corn, soy oil and cattle. For others, the peak of the Raging Bull roller coaster wasn’t high enough to get them to a net gain. Oats saw the largest loss, down 9.88% for the week and no longer showing a “4” in front of the price.
 
Corn survived a wicked Tuesday sell off to close 2 cents higher for the week, extending the string of higher weekly closes to four weeks. Weekly USDA export sales were 1.168 MMT, comfortably above trade expectations. Mexico bought 640,600 MT to offset projected losses of 1.3 MMT from the February freeze. Most of this was known business, but hardly suggests price rationing is working. Weekly ethanol production was the slowest since January, suggesting that at least a few of the plants are having trouble making money in the current environment. Ethanol did rally to $2.544/gallon on Friday, but for much of the week ignored the higher gasoline prices and encouraged voluntary blending.
 
The soybean complex was mixed. Higher energy futures prices gave soy oil a boost, as did smaller than expected Census soy oil stocks for January 31. Those hinted at a potential pick up in soy oil use for biodiesel. Meal was unable to climb out of the early week hole and lost 0.64% for the week. With the drag from meal on product value, soybeans were down 3 cents for the week, or 0.18%. They were down for the third week in a row. The Census Crush report on Thursday put January soy crush at 149.17 million bushels, below trade estimates. Census meal stocks were 467,590 tons, down from a revised 510,700 tons in December and well below the 630,497 tons from a year ago. Soy oil stocks were 3.423 billion pounds. That was bullish, with the trade guess up around 3.536 billion. USDA weekly export sales on Friday morning were a net 396,400 MT, compared to the trade guesses at 300 to 500 thousand MT. Chinese purchases for the week were 79,500 MT of old crop and 45,000 MT of new crop. 
 
Wheat futures were sharply lower at all three exchanges, despite double digit gains on Friday. Chicago dropped 5.56%, with KC off 4.54% and MPLS off 4.16%.  Weekly export sales were 726,300 MT of combined old and new crop sales, on the low end of trade guesses in the 700 thousand to 1 MMT range. The EU granted export licenses for 439,000 MT of soft wheat this week, the largest total in six weeks and quashing rumors that they were running out of export inventory. The USDA Chief Economist is projecting total U.S. wheat production to fall to 2.08 billion bushels in 2011/12 but is forecasting World wheat supplies will increase.
 
Cotton futures lost 2.88%, but finished with a limit up day on Friday. They were quintessential roller coaster, with 7 cent limit move days in both directions. USDA weekly export sales were 299,200 running bales for combined upland and pima bookings. USDA Chief Economist Joe Glauber spoke at the Ag Forum in Washington on Thursday, projecting cotton stocks will rebuild in 2011/12. Global production is forecast at a record 127.5 million bales, an increase of 10.6 percent over last marketing year. Consumption is expected to rise to 120 million bales, up about 3 percent. Global stocks are expected to be over 50 million bales, the highest since 2008/09 but still tight relative to consumption and average historical cotton stocks. US planted acreage is expected to be 13 million acres of combined upland and pima, up from the 12.8 million projected previously.
 
Here are the Friday night closes for the past four weeks, along with the net change for this week vs. the previous week:
 

 
Commodity
 
 
 
 
Weekly
Weekly
Month
02/04/11
02/11/11
02/18/11
02/25/11
Change
% Change
Mar
Corn
$6.79
$7.07
$7.10
$7.12
0.02
0.32%
Mar
CBOT Wheat
$8.54
$8.67
$8.22
$7.77
0.46
5.56%
Mar
KCBT Wheat
$9.43
$9.73
$9.30
$8.88
0.42
4.54%
Mar
MGEX Wheat
$9.89
$10.18
$9.56
$9.16
0.40
4.16%
Mar
Soybeans
$14.34
$14.16
$13.68
$13.66
0.03
0.18%
Mar
Soybean Meal
$383.20
$378.10
$362.00
$359.70
2.30
0.64%
Mar
Soybean Oil
$58.98
$58.49
$56.49
$56.95
0.46
0.81%
Feb
Live Cattle
$108.25
$107.78
$111.05
$112.03
0.98
0.88%
Mar
Feeder Cattle
$125.00
$126.03
$130.08
$129.83
0.25
0.19%
April
Lean Hogs
$91.65
$92.38
$92.28
$90.20
2.08
2.25%
Mar
Cotton
$167.86
$189.97
$197.02
$191.34
5.68
2.88%
Mar
Oats
$4.16
$4.18
$4.10
$3.69
0.41
9.88%
Mar
Rice
$15.80
$15.89
$14.75
$13.96
0.80
5.39%

 
Cattle futures were higher for the week. The cash cattle market was firm again, with declining ready numbers into March. Packers paid $111 in the south, and $180 in the north. February futures rallied to get above the cash, and April maintained a premium in case the rally continues. USDA reported weekly export sales of 15,100 MT. The wholesale market was firmer for the week, with choice boxes up 1.7% and select boxes quoted 2.3% higher on a Friday/Friday basis. Beef production for the week was down an estimated 1.5% from the previous week, but up 2.7% from the same week a year ago. Estimated carcass weights are up 13 pounds from last year, despite the high cost of feed and lack of a meaningful premium for producing choice grade cattle.
 
Hog futures were down 2.25% for the week. Part of that was standard gap trading. April futures were at a premium to February when the latter expired on the 14th. The market is trying to close the chart gap, lacking evidence that cash hogs were moving to the higher price being shown by the April. Pork production YTD is up 0.4% from 2010, while the estimated production this past week was up 0.9%. Average slaughter weights are running persistently higher at 208 pounds vs. 203 a year ago. Wholesale prices were up $1.69 for the week, a 1.9% rise in the carcass value that allowed for more packer spending but didn’t require it.
 
Market Watch:  Monday marks first notice day for March futures deliveries in the grains and metals. Cotton, of course, is already well into the delivery period with little to show for it. USDA will release weekly Export Inspections on Monday and Export Sales on Thursday morning. Friday will be the last trading day for March options in cattle, currencies and the US dollar index. Otherwise, it should be a low news week for commodities, with more direction provided by the Middle East situation.
 
Looking to enhance your existing Ag Marketing Professional subscription? Add free futures market quotes sent to your cell phone via our Market Monitor service. Or “push” the daily recommendations out to your phone as they happen with Market Messenger 2. Call in consulting service with Alan is also available for a limited number of new customers in our Ag Marketing Professional Premium package. Call our office for details on either service at 402-289-2330.  
 
There is a risk of loss in futures and options trading. Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results. Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on our individualized subscription and consulting services.
 
 Copyright 2011 Brugler Marketing & Management, LLC

Grains Still Lag!

Feb 18, 2011

 brulogomed

Market Watch with Alan Brugler
February 18, 2011
Grains Still Lag!
 
Yes, you read that right. While corn posted a new high for 2011, it is still 50 cents away from the 2008 high. Soybeans are below their 2008 high, and wheat is well below its 2008 high. This is not the case for commodities in general. The CRB Index, basket of commodities, traded more than 8% above the 2008 high this week. That doesn’t mean that the grains and oilseeds necessarily have to go to new highs, but it does show there is potential. Cotton, of course, hit the highest price in history this week, finally eclipsing the Civil War era top.
 
Corn tacked on another 3 cents this week, a 0.46% gain. That seemed like nothing after recent weeks, and it almost was. Without the more than 20 cent gains on Thursday, the market would have been down for the week. The Acreage War is still underway, but corn appeared to be winning. USDA showed 92 million acres in their baseline forecast released on Monday. Soybeans were under pressure, moving the soy:corn ratio toward corn. As we had anticipated, the bulls again came in late on Friday and dress up the close. Fundamentally, ethanol weekly production slowed down. Weekly ethanol stocks were close to UNCH. The weekly USDA Export Sales report again showed stronger business than the trade had expected at 1.17 million metric tonnes (46 million bushels) with the trade estimates ranging between 800 thousand and 1.1 MMT.
 
The soybean complex was down for the week. Brazilian producers have sold nearly half of their production already, and much of it at much lower prices. Merchants are thus able to be competitive and offer FOB prices below US levels. Brazilian harvest is more than 10% completed, and the beans are starting to be available. Argentina isn’t harvesting yet, but did avert a port strike and thus allowed more soy products into the global export market. China raised bank reserve requirements again, in another attempt to slow inflationary pressures. There were rumors that China would reduce import duties for soybeans and soy oil, which would pressure internal prices and presumably open the door for more US (and South American) shipments because it would make them cheaper to end users.
 
Wheat futures were lower on all three exchanges this week. Export interest has been coming in waves, and that buying continues. Egypt bought two cargos of US soft wheat. Turkey bought 100,000 MT of HRW. Japan bought their usual MOA tender requirements. The selling pressure was mostly long liquidation as prices hit longer term technical targets. USDA weekly export sales were 726,500 MT for last week, above the published trade estimates of 600,000 MT. 
 
Cotton futures set new all time highs, with limit up moves driving the March contract as high as 215.25 before a limit down drop on Friday. Some players were clearly scared of the volatility and margin call risk. The folks who ended up paying for the panic were mills with on call cotton positions that needed to be priced before first notice day. Weekly cotton export sales were modest, and contained little Chinese business. Export sales were 299,200 RB of combined upland and pima bookings.
 
Here are the Friday night closes for the past four weeks, along with the net change for this week vs. the previous week:
 
 

 
Commodity
 
 
 
 
Weekly
Weekly
Month
01/28/11
02/04/11
02/11/11
02/18/11
Change
% Change
Mar
Corn
$6.44
$6.79
$7.07
$7.10
0.03
0.46%
Mar
CBOT Wheat
$8.26
$8.54
$8.67
$8.22
0.45
5.16%
Mar
KCBT Wheat
$9.12
$9.43
$9.73
$9.30
0.43
4.45%
Mar
MGEX Wheat
$9.62
$9.89
$10.18
$9.56
0.62
6.12%
Mar
Soybeans
$13.98
$14.34
$14.16
$13.68
0.48
3.39%
Mar
Soybean Meal
$377.00
$383.20
$378.10
$362.00
16.10
4.26%
Mar
Soybean Oil
$57.27
$58.98
$58.49
$56.49
2.00
3.42%
Feb
Live Cattle
$107.50
$108.25
$107.78
$111.05
3.27
3.04%
Mar
Feeder Cattle
$126.22
$125.00
$126.03
$130.08
4.05
3.21%
April
Lean Hogs
$91.63
$91.65
$92.38
$92.28
0.10
0.11%
Mar
Cotton
$164.75
$167.86
$189.97
$197.02
7.05
3.71%
Mar
Oats
$3.86
$4.16
$4.18
$4.10
0.08
1.97%
Mar
Rice
$15.01
$15.80
$15.89
$14.75
1.14
7.15%

 
Cattle futures jumped $3.27 for the week, a 3.04% advance. That was fueled by tightening numbers of cash cattle that are market ready, with cash trading at $109-110 on Friday. Wholesale prices ran into some resistance, with the choice boxed beef quoted at $167.29 on Friday. Select was at $166.59 and the choice/select spread rebounded above zero.
 
Hog futures wandered around some, but ended the week only 10 cents lower. They have settled in less than a dollar range for the past four weeks. The CME Index has been rising, and is now at $84.49. April futures are way up at $92.27 and expecting cash to continue to rally. The pork carcass cutout value is at $90.39 and also implies a more bullish view of the market than what we saw in the sliding cash hog prices this past week.  
 
Market Watch:  This will be a short week, with the US markets closed on Monday for the President’s Day holiday. That delays the usual Monday USDA Export Inspections report until Tuesday. Those who inherited futures positions at the March grain options expiration on Friday Feb 18 will have to wait until the Monday evening Globex session to do anything about it. USDA will release the monthly and annual Cold Storage reports on Tuesday. Tuesday will also be FND (First Notice Day) for March cotton futures. Thursday will mark the release of the monthly Census Crush and Census Cotton Consumption reports. USDA weekly export sales will be delayed until Friday morning.
 
Join us for one of the Brugler Marketing Winter Seminars and get the fundamental and technical information you need to navigate these markets over the next 6 months. Click on the following link and then choose the registration packet link for the location nearest you.
 
 
 There is a risk of loss in futures and options trading. Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results. Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on our individualized subscription and consulting services.
 
 Copyright 2011 Brugler Marketing & Management, LLC

Seven Dollar Corn

Feb 11, 2011

 brulogomed

Market Watch with Alan Brugler
February 11, 2011
Seven Dollar Corn!
 
There were a couple rare events that happened this past week. Of course, Egypt’s President Mubarak resigned on Friday, leading to a new government in that country for the first time in over 30 years. The one that got OUR attention, however, was the first close over $7 per bushel for nearby corn futures since the week of July 4th in 2008.
 
Corn tacked on another 28 cents this week, a 4.1% move that made it the second largest gainer for the week after the surging cotton market. As we had anticipated, the bulls again came in late on Friday and dress up the close. Fundamentally, ethanol weekly production slowed down, and ethanol stock piles increased. That didn’t seem to affect ethanol prices much. The weekly USDA Export Sales report again showed stronger business than the trade had expected.
 
The soybean complex was down for the week. The Chinese came back into the market after their spring holiday week, but the business was mostly originated in Brazil, where cheap new crop beans are available. Brazilian producers have sold nearly half of their production already, and much of it at much lower prices. Merchants are thus able to be competitive and offer FOB prices below US levels. USDA raised projected Brazilian bean production 1 MMT on Wednesday, and the trade is convinced that the final number will have a 7 in front of it rather than USDA’s 68.5 MMT. USDA cut projected Argentine production by 1 MMT, but took a go slow approach on yield reduction due to improved crop moisture there.
 
Wheat futures were higher at all three exchanges again this week. Export interest has been coming in waves. Egypt bought one cargo of US soft wheat on Friday, along with other origins. Jordan bought wheat, Tunisia is tendering for 50,000 MT of soft wheat, Japan bought their usual MOA tender requirements. More Aussie supplies are showing up in the world market, both as milling wheat and feed wheat. Thailand bought 40,000 MT of Aussie prime hard wheat on Thursday night. That is the most available supply right now, with the EU trimming the quantity of export licenses issued as exportable supplies there shrink. The numbers of licenses to date is 12.8 MMT vs. 10.7 MMT at this point last year.
 
Cotton futures literally jumped, up 13.17% in a single week. The CFTC approved, and ICE implemented, new daily trading limits of 7 cents (700 points per day) when futures are above $1.70 per pound. The market went after it like a hot new toy, with several limit up moves during the week. Some players were clearly scared of the volatility and margin call risk. Others just wanted out before March options expired on Friday and they lost the thin veil of production offered by fading their futures position in the options market. Weekly cotton export sales were modest, and contained little Chinese business. India appears to have ample cotton supplies, but is not making those available for export at the present time.
 
Here are the Friday night closes for the past four weeks, along with the net change for this week vs. the previous week:

 
Commodity
 
 
 
 
Weekly
Weekly
Month
01/21/11
01/28/11
02/04/11
02/11/11
Change
% Change
Mar
Corn
$6.57
$6.44
$6.79
$7.07
0.28
4.13%
Mar
CBOT Wheat
$8.25
$8.26
$8.54
$8.67
0.13
1.55%
Mar
KCBT Wheat
$9.00
$9.12
$9.43
$9.73
0.30
3.21%
Mar
MGEX Wheat
$9.37
$9.62
$9.89
$10.18
0.29
2.96%
Mar
Soybeans
$14.12
$13.98
$14.34
$14.16
0.18
1.22%
Mar
Soybean Meal
$379.60
$377.00
$383.20
$378.10
5.10
1.33%
Mar
Soybean Oil
$57.56
$57.27
$58.98
$58.49
0.49
0.83%
Feb
Live Cattle
$107.95
$107.50
$108.25
$107.78
0.47
0.44%
Mar
Feeder Cattle
$125.55
$126.22
$125.00
$126.03
1.03
0.82%
Feb
Lean Hogs
$80.33
$85.75
$84.50
$86.40
1.90
2.25%
Mar
Cotton
$156.94
$164.75
$167.86
$191.23
189.97 
13.17%
Mar
Oats
$3.86
$3.86
$4.16
$4.18
0.02
0.60%
Mar
Rice
$14.87
$15.01
$15.80
$15.89
0.08
0.54%

 
There is a Japanese saying that the nail which sticks up is hammered down. Cattle futures gained 75 cents a week ago, and were sticking up above the prior two weeks. They were hammered back down into that $107-108 range this week, losing 47 cents or 0.44%. Wholesale prices ran into some resistance, with the choice boxed beef losing $3.49 on the week, or 2%. The select cuts were down 1.3% or $2.09 and the choice/select spread dropped below zero. Finishing cattle to choice grade is costing producers money rather than making them money.
 
Hog futures were up $1.90 for the week or 2.25%. February futures need to converge with cash when they expire on February 14. They have been hanging above the cash market for several weeks, anticipating that it would rally, and it has. The CME Index has been rising, but is now at $84.53 and up from $81.50 as of last Friday. Feb futures closed at $86.40 on Friday, so the basis has narrowed to less than $2. The pork carcass value was down a little less than 1% on a Friday/Friday basis, losing 86 cents per hundred for the week.  
 
Market Watch:  We start off the week with Valentine’s Day, the traditional US holiday for lovers. Data lovers will see the monthly NOPA crush report on Monday, along with USDA’s weekly Export Inspections. Hog traders will say goodbye to the February contract as it expires on the 14th. Cotton traders will be getting used to life without the March options, which expired on the 11th and left some folks with unexpected futures positions. Grain traders face the same separation anxiety on Friday, February 18th , when the March grain options expire. Cattle producers will also see the monthly Cattle on Feed report from USDA on Friday.
 
Join us for one of the Brugler Marketing Winter Seminars and get the fundamental and technical information you need to navigate these markets over the next 6 months. Click on the following link and then choose the registration packet link for the location nearest you.
 
  
There is a risk of loss in futures and options trading. Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results. Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on our individualized subscription and consulting services.
 
 Copyright 2011 Brugler Marketing & Management, LLC

Bullhogs

Feb 04, 2011

 brulogomed

Market Watch with Alan Brugler
February 4, 2011
Bullhogs
 
Punxsutawney Phil failed to see his shadow on Groundhog Day (Wednesday), which in Pennsylvania tourist lore means winter is winding down (if he sees his shadow winter is supposed to linger another 6 weeks). The NWS says Phil is only about 40% accurate, but lets not quibble. He is likely to be right about some part of the United States! What I want to know is whether the bull market in corn or soybeans is in danger of being over. How do we define a shadow in the grains or livestock? For the moment, there appears to be plenty of cloud cover, with all of our tracked commodities except for hogs and feeder cattle being higher on the week. It must be because of all that snow!
 
Corn tacked on another 35 cents this week, a 5.36% move that made it the largest gainer for the week. As we had anticipated, the bulls came in late on Friday and dress up the close. The Friday gain of 16 cents was 46% of the advance for the entire week. Fundamentally, ethanol weekly production slowed down, which would be bearish, but stocks also shrank despite a burgeoning gasoline supply. The cattle inventory report showed long term shrinkage of the cattle herd, but at the moment there are more animals in the lots than last year. Chicken producers are also expanding placements. Export sales to South Korea are likely to slow down due to the shrinkage of their livestock industry (FMD outbreak) but the weekly Export Sales report for the last week of January showed much stronger business than the trade had expected.
 
The soybean complex was solidly higher for the week, with nearby March beans gaining 36 cents. That was a 2.5% gain for the week. Meal futures were up less than 2%, but soy oil got a boost from rising palm oil prices. Chinese futures at Dalian were closed after Tuesday, due to the weeklong Spring Festival holiday. They should be using up a lot of soy oil while entertaining the family, but they don’t always rush to replace it when they come back to work. USDA reported huge weekly export sales of 4.1 MMT for the week ending January 27. That’s 151 million bushels of commitments. More than 3 MMT of that total was already known business due to USDA announcements, but the old crop total gave the bulls a little encouragement by suggesting that $14 beans were not a total turnoff. The strength of the Japanese yen means they are feeling only a portion of the price increase seen in the US since last summer.
 
Wheat futures were higher at all three exchanges this week. Chicago was the strongest in percentage terms, despite export demand being clearly more aggressive for the hard wheat classes traded at KC and MPLS. The inter-market spreads need to adjust periodically and this was such a week. Index funds were actively rolling out of the March contracts, a process which will continue all this week. That is no longer a surprise event, however, and for the most part the rolls have been “sanitized” by pre-roll activity. US wheat export sales for the last week of March were smaller than the trade had expected, given all of the Middle East and North Africa hype. Egypt was a buyer, but some questions remain about unloading activity at the ports and viable letters of credit for the shipments. Stats Canada on Friday put the Dec 31 all wheat stocks for Canada at 20.232 MMT. That was close to pre-report estimates and didn’t help the bulls.
 
Cotton futures were up 3.11 cents for the week, a 1.89% gain that came about despite a late week sell off. Weekly export sales were weaker than expected on Thursday morning, but the main bearish input appeared to be the imposition of a position waiver requirement for March deliveries. Firms wishing to hold more than 300 March contracts into the delivery period need to file with the Market Surveillance group for a waiver justifying the need to do that. Hedgers should be able to get the waiver, but spec longs might not. Some of them appeared to be bailing out on Thursday and Friday. The index fund roll period is also underway, and a chunk of that March selling was just rolling of positions to May.
 
Here are the Friday night closes for the past four weeks, along with the net change for this week vs. the previous week:
 

 
Commodity
 
 
 
 
Weekly
Weekly
Month
01/14/11
01/21/11
01/28/11
02/04/11
Change
% Change
Mar
Corn
$6.49
$6.57
$6.44
$6.79
0.35
5.36%
Mar
CBOT Wheat
$7.73
$8.25
$8.26
$8.54
0.28
3.39%
Mar
KCBT Wheat
$8.60
$9.00
$9.12
$9.43
0.31
3.37%
Mar
MGEX Wheat
$8.90
$9.37
$9.62
$9.89
0.27
2.81%
Mar
Soybeans
$14.23
$14.12
$13.98
$14.34
0.36
2.54%
Mar
Soybean Meal
$388.10
$379.60
$377.00
$383.20
6.20
1.64%
Mar
Soybean Oil
$57.27
$57.56
$57.27
$58.98
1.71
2.99%
Feb
Live Cattle
$109.38
$107.95
$107.50
$108.25
0.75
0.70%
Mar
Feeder Cattle
$127.30
$125.55
$126.22
$125.00
1.22
0.97%
Feb
Lean Hogs
$79.53
$80.33
$85.75
$84.50
1.25
1.46%
Mar
Cotton
$141.44
$156.94
$164.75
$167.86
3.11
1.89%
Mar
Oats
$3.92
$3.86
$3.86
$4.16
0.30
7.78%
Mar
Rice
$14.01
$14.87
$15.01
$15.80
0.79
5.26%

 
Cattle futures gained 75 cents for the week, or 0.7%. Wholesale prices ran into some resistance, wit the choice boxed beef down 1% week over week and select boxes down 0.6% on a Friday/Friday comparison. Packer margins were fairly attractive, but on paper were squeezed a little this week because cash cattle traded at $105-106 and were up $1 or more from the prior week. The massive snow storm that swept through the Plains and Midwest made all prices somewhat nominal as trucking was snarled and some of the prices were based on whether you could get the animal or product to the needy buyer.
 
Hog futures were higher on Friday, but dropped 1.46% for the week. February futures need to converge with cash on February 14. The CME Index has been rising, but was only at $81.50 as of Friday while futures were at $84.50 and drifted a little lower out of concern that cash might not get all the way to the futures price level. The pork carcass value was down 31 cents on Friday, but up 60 cents for the week. The pork butts and picnics were the strongest cuts, while loins were weak.
 
Market Watch:  The main USDA report this week will be the monthly WASDE Supply/Demand report, on Wednesday. The trade is looking for comparatively minor revisions in the US numbers, but there is keen interest in what the Outlook Board does to the South American corn and soybean production figures. Cattle traders will start the week reacting to new positions inherited during Friday’s options expirations and exercises. Monday will feature the USDA Export Inspections report, and is also first notice day for February cattle futures deliveries. USDA weekly export sales are due on Thursday morning.  
 
There is a risk of loss in futures and options trading. Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results. Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. 
 
Call 402-697-3623 for information on our individualized subscription and consulting services such as Ag Marketing Professional and Special Research Reports.
 
 Copyright 2011 Brugler Marketing & Management, LLC
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