CORN
Corn traded both sides of unchanged overnight to begin what could be yet another directionless trading day. Analysts had expected to see the market move higher as we approached the September Supply and Demand Report that comes out on Wednesday, but so far the sideways pattern has held. News is limited, outside markets are quiet and traders are just waiting for Wednesday's report.
WHEAT
The wheat performed well last week and is trying to move out of the top of the two month consolidation pattern. There is still a great deal of concern regarding Russian exports and there is a growing concern about weather in Australia. Both of those lead to hopes that US exports will improve, which is something we may not be able to handle with this year's small corn crop.
SOYBEANS
Since last week's all time highs the soybeans have dirfted lower and the overnight trade has done nothing to change that pattern. Demand is still strong and Wednesday's report should be friendly, but that hasn'thelped the market in the past 5 trading sessions. Plan on the soybeans to trade both sides of unchanged through the day.
LIVE CATTLE
Live Cattle futures closed mixed on Friday, with the lead October contract up moderately, while deferred contracts backed off. Cash trade surfaced late on Friday in Kansas and Nebraska, with tops of $124.50 in Kansas and $192 in the beef market up north. Texas feeders passed on the higher offers, up a short bought situation for packers and likely larger show lists in the south.
FEEDER CATTLE
Feeder Cattle futures closed lower on Friday and off about .50 for the week. Overnight corn prices turned higher, which should limit early strength in the feeders this morning. Any extended strength in the corn going into or coming out of Wednesday's grain report could drive feeders into the lower part of the recent channel. Grain weakness could push feeders above the top side of the same channel.
CRUDE OIL
October crude oil prices were flat to mostly lower during the initial morning hours, pressured in part by weakness in global equity markets and disappointing Chinese economic data over the weekend. Chinese factory output declined to its lowest level in more than three years and import activity came in weaker than expected. Additionally, estimates on Chinese August oil demand slipped to its lowest level in nearly two years. While this would seem to bolster the case for more spending projects by the PBOC, a surprise jump in August CPI, to a five month high, could delay further action. Some traders indicated losses in the crude oil market were probably limited by hopes that the US Fed will pursue more monetary stimulus at this week's meeting. The Commitments of Traders Futures and Options report as of September 4th showed non-commercial traders were net long 290,525 contracts, a decrease of 8,065. Non-commercial and nonreportable traders combined held a net long position of 299,760 contracts, for a decrease of 1,462 in their net long positioning.
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.
