CORN
The old crop corn and the bull spreads bounced back overnight, but traders may be disappointed by the poor export sales number of only 349,000 MT for the old crop. This makes two reports of soft weakness in a row, which is something the bulls don't need to see. The recent plunge in the Dollar may change sales for the better soon, but bullish traders will be nervous until it happens. Analysts look for a two sided trading session and a test of yesterday's high.
WHEAT
Rain makes grain as they say. That must have been the feeling yesterday. However there wasn't much follow through selling overnight and analysts look for consolidation trade for a day or so as traders re-evaluate their selling decisions. Wheat export sales were poor as well, which won't help matters today, but with the plunging Dollar, analysts doubt we will see much follow through today.
SOYBEANS
The soybeans were the upside leader overnight and that may be the case for a few more days. Basis levels are improving and collectively the export numbers for the soybean complex were more than adequate. The July soybeans made a new high for the move overnight, which looks good on the charts, and analysts give the soybeans the best chance of holding gains today.
LIVE CATTLE
Live Cattle futures closed sharply higher on Wednesday, with the June contract rejecting weekly lows and posting its' highest close for the week. Cutout values continue to weaken and cash movement was modest near the highs for the week. Overnight trade saw moderate losses as traders try to determine how much weight to apply to the new lows in the Dollar vs. sliding beef prices.
FEEDER CATTLE
Feeder Cattle futures posted a strong rebound on Wednesday, with the combination of lower corn futures and sharply higher live cattle futures, traders viewed this as a welcome boost. Overnight activity had been thin, but with a weaker tone. Most feeder contracts were giving back 25-30% of the previous days' gains. Analysts look for wild price swings as traders try to decipher the effects of outside market influences.
By Donna Hughes
Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchange’s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the AllAgNews.com Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.
Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. O’Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.
