CORN
both old crop and new crop ending stocks were unchanged at 851 and 1881 respectively. The numbers are negative relative to expectations, but in reality it isn't all that unusual to see very few changes in the June report. Traders should go back to trading weather soon according to analysts. Crop condition ratings came in at 66% Good to Excellent, down 6 points. Corn condition is now below average.
WHEAT
Wheat numbers were friendly with new crop ending stocks at 694 million. That is still plenty of wheat, but the trend is definitely toward tighter stocks say analysts....which is not negative to the market. Wheat traders will be waiting to see how the corn and beans trade throughout the day.
SOYBEANS
The bullishness came in the soybeans. Old crop ending stocks at 175 million and new crop at 140 million were both lower than expected. The soybean market must slow down new crop demand to avoid extremely tight supplies next summer. Crop conditions dropped to 60% Good to Excellent, which doesn't bode well for the crop.
LIVE CATTLE
Live Cattle futures closed moderately lower on Monday on light liquidation. Overnight activity was firmer across the board, supported by outside markets and an aggressive start to this week's kill. Traders will also be interested in this morning's Supply and Demand Report for near term direction. Asking prices of $124 in the south and $198 in the north look to be firm at this time according to reports.
FEEDER CATTLE
Feeder Cattle futures closed moderately to sharply higher on Monday, as rising cash index levels and declining corn prices lifted the market. Overnight was more of a mixed bag as traders prepared for this morning's grain report. Analysts say the charts remain supportive.
CRUDE OIL
The negative influence of Monday's wide range reversal pushed July crude oil prices down to their lowest level since October 6th in overnight action. The outside market tone was slightly positive during the early morning hours, and that probably helped lift crude oil from their overnight low. However, there remain a number of headwinds regarding the European debt crisis that are keeping traders nervous. Data from OPEC earlier this morning indicated that the supply and demand balance in the oil market could ease later this year as the global economy grapples with slowing economic growth. Comments from Saudi Arabia's oil minister seemed to back track comments yesterday, saying that he was happy with OPEC's current oil production target. Traders are paying close attention to OPEC member comments ahead of their meeting Thursday.
There is substantial risk of loss to futures and options trading. Past performance is not indicative of future results.
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.
