The recovery from Sunday night’s gap lower continues today for notes and bonds increasing the chances that the lows hit as markets opened for the week on Sunday night will hold up. The opposite trade is underway in the Dow, S&P and Russell stock indexes as they sell off from Sunday night’s extreme high print. The NASDAQ which started it’s …
Ag Macro
The Soy continues its rally based on weather. The general belief now is that south America is under a La Nina scenario, which if true, could bring dryness to much of Argentina through the spring. some of this is speculation but the chance is there and has the market thinking. It is estimated funds bought beans as much as 8,000 …
The Grass is Always Greener: US Dollar
December US Dollar Futures Last month’s harsh treatment of our beloved greenback saw the currency giving back over 60% of its gain from the mid September rebound. Currently trading near 93.30 puts the contract in my opinion poised to reach for higher prices. I believe we are in the early stages of the c wave of an a-b-c …
Livestock Report
Live Cattle The February Live Cattle contract traded down to a new low (120.825) for the move on Monday morning, before a sharp recovery led to the high of the day at 122.15. It grinded lower from here the rest of the day and ended the session at 121.175. This is just below the 121.20 support level. It formed a …
Ag Commentary
The markets are rallying led by meal and beans. The meal market is held up on good Chinese demand, and a thought that SA weather presents risk. I don’t want to write to much about this. The Chinese demand is nice and is legit as the demand for animal feed is positive. But needed for global demand. The SA production …
Daily Gold Report
Gold declined on Monday, its haven status overshadowed as U.S. equities climbed and the dollar firmed after weekend passage in the Senate of what’s seen as business-friendly tax changes. Gold for February delivery settled down $4.60, or 0.4 percent, at $1,277.70 per ounce. The dollar was lifted by expectations that U.S. tax cuts would boost economic growth, which could fuel inflation and …
Bonds Find Support Regardless of the Tax Bills Progression Through Congress
Sunday night’s gap open in the notes and bonds was right at the bottom of recent ranges. Since market is not in a trend mode the early action turned out to be a selling excess for Monday’s range. Actually the lows traced out might turn out to be good for the whole week ahead because Sunday nights have a track …
Cow Tipping: February Live Cattle
February Live Cattle After taking it on the chin in the final session of last week the market was left vulnerable for a follow thru. Today prices came under early pressure opening lower at 121.45 and quickly posting an extreme to 120.825. The contract did manage to claw it’s way into positive territory before stumbling to the …
Ag Outlook
The beans were pushed higher with fund buying today. The weather outlook in Argentina calls for a drier scenario. As mentioned that’s all that the market needs to see. The funds have made a buy play numerous times during this time period and been right as the carry has declined. In addition the meal has been the leader with a …
Notes and Bonds Storm Higher On Flynn News
I was hoping for a couple of interesting things which could affect trading and pick up the volatility this week and we certainly got them in Spades on Friday. It was almost lived up to the old adage beware what you wish for. Beside whip- sawing on the tax proposal news out of Congress the bond market rocketed up and …