Yesterday’s Close: December corn futures finished yesterday’s session down 4 cents, trading in a range of 5 ½ cents. Funds were estimated sellers of 9,000 contracts.
Fundamentals: There has not been a lot of new news on the wires over the past 24 hours which led to a slow bleed lower, carrying over into the early morning trade. Crop tours continue on and in most cases the results are confirming what the USDA had projected two weeks ago, a big crop. The Pro Farmer tour has their Nebraska yield coming in a hair over 179 bushels/acre, well above last years 165.4 bushels/acre.
Yesterday’s Close: November soybean futures finished yesterday’s session down 8 ¾ cents, trading in a range of 10 cents. Funds were estimated sellers of 3,000 contracts.
Fundamentals: The fundamental picture has not changed much over the last 24 hours. Continue disruptions with Chinese trade coupled with a big crop has kept a lid on rally attempts. Expect trade headlines to come and go and come and go again; this will keep volatility alive which will provide great short-term opportunities for both the bulls and the bears. Brazilian bean acres are also expected to increase again this year which shouldn’t come as a shock as demand for their product continues to grow.
Yesterday’s Close: December wheat futures finished the day down 14 ¾ cents, trading in a range of 18 ¼ cents. Funds were estimated sellers of 8,000 contracts.
Fundamentals: The bulls have found it difficult to find new bullish news to propel the market higher, which has led to long liquidation from the funds. As mentioned over the last few weeks, the headlines of hot and dry weather in places like Europe, Australia, and the Black Sea have run their course. The market will need to see Russian exports get ratcheted back to put a floor in this market, we don’t expect to see this happening near term.
Cattle Commentary: Cattle futures were mute for much of the session but saw sellers scramble in into the close, likely leading to a weaker open tomorrow morning. We have been cautioning that the market is looking more tired (fats and feeders), that’s not to say we are going to roll over, just suggesting that a visit back to the bottom end of the range is likely. Talks of 110.50 cash to start the week is the word on the street. Tomorrows Fed Cattle Exchange has 359 head offered, this could shift the line in the sand. We would not be surprised to see some position squaring ahead of Friday’s Cattle on Feed report. There are some big headlines out this evening surrounding the President, if that spills over into a pop in outside market volatility, it may be hard for cattle to avoid.
Front month hogs finished the day while deferred months rallied on swine flu concerns in China. October futures finished the day own .375 at 56.10, trading in a range of 1.675. This market continues to have wide swings on headlines that are uncontrollable. Supply concerns continue to linger but potential disruptions in China could provide a huge rally in prices if the flu is not contained. If you don’t have the stomach for futures in this market environment, consider using options. We would not be surprised to see the market come into more of a range between....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
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