CORN
The US corn crop is now rated at 24% Good to Excellent, which was down 1 point and 50% Poor to Very Poor, which was up 2 points. The decline in ratings has definitely slowed and that fact that the maturity is so advanced this year means that the condition ratings probably won't decline much more. For the moment, traders are waiting for Friday's report to give us a better idea of what corn production will be, so look for a few more sideways sessions according to analysts.
WHEAT
The wheat market did well yesterday and had follow through buying overnight. Trend line resistance in the December KW contract will come in at the $9.37 area today. It is doubtful that the market can move through that resistance until Friday, but the resistance should be tested soon. Directionless trade is anticipated until Friday's report.
SOYBEANS
The soybeans have gained back about 25% of yesterday's losses. The Good to Excellent rating stayed unchanged at 29%, but the Poor to Very Poor increased to 39%, so the crop is still deteriorating, but not as fast as it once was. Many traders are convinced that the beans can still recapture yield potential and perhaps avoid a disaster like the corn. Crop maturity is advanced, however, so the crop is running out of time.
LIVE CATTLE
Live Cattle futures closed narrowly mixed on Monday and analysts expect to see similar trade today. Overall, show lists appear to be near unchanged from a week ago. Beef prices were higher to begin the week and packers started the week 4,000 ahead of last week wth Monday's kill. A choppy trade should continue, with a stronger technical bias. There were 71 contracts tendered against the August contract yesterday afternoon.
FEEDER CATTLE
Feeder Cattle futures closed moderately lower on Monday, as the market struggles to get out of the recent trading range. Overnight corn values are modestly higher. Traders will be looking for direction after Friday's Grain Report.
CRUDE OIL
September crude oil prices traded on a higher track during the overnight and initial morning hours, supported by a positive outside market tone and ongoing optimism that the ECB will pursue their bond buying program. Major equity markets traded into new multi-month highs and the US dollar was into a new four week low. Ideas that North Sea export activity could slow by around 14.0% in September was seen as another supportive force for the crude oil market. This seemed to help September Brent crude oil climb above the $110.00 mark for the first time since May 16th. Another positive force for the crude oil market comes from ongoing violence in Syria after their Prime Minister fled the country yesterday and as Iran is expected to hold a meeting regarding Syria. Tropical Storm Ernesto is now expected to skirt key Gulf of Mexico oil and gas operations as it makes its way toward the Yucatan Peninsula.
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.
