Livestock Report

Ben DiCostanzo General Commentary Leave a Comment

June Lean Hogs made an early attempt at a rally, reaching 89.80 for the session high and then reversing course and trading down to the low at 87.70. It settled at 88.225. It is holding ever so gingerly above support at 87.065 (50% retracement). If price can open strong and trade above resistance at 90.425, it could lead to a …

Reversal of Fortune

Steve Bruce General Commentary Leave a Comment

                                It’s a long growing season and it appears that the speculative community believes that prices might continue sliding if normal weather conditions prevail through harvest.  Record short positions in futures and options might just be the tip of the iceberg as we don’t know what’s going on in the over the counter  and swap markets. We still sense that …

Livestock Report

Ben DiCostanzo General Commentary Leave a Comment

  June Lean Hogs traded to a new low for the recent down move on Monday, April 29, 2019. It slid to 87.025, just below the 50% retracement of the all-time high (133.425) to the Oct 2016 low (40.70) at 87.0625. It settled at 88.05. This is an important level in my opinion as falling below here and then taking …

Acreage Shifts Coming?

Steve Bruce General Commentary Leave a Comment

                                Tonight’s USDA figures are anticipated to show the nation well behind average with corn, beans,  spring wheat, durum and oat plantings while winter wheat conditions are anyone’s guess.  Mother Nature appears to be uncooperative this year, so far, and even though farmers welcome rain it doesn’t do any good when the crop is still in the seed bag. Crusty …

Grain Spreads: To Turn or Not to Turn

Sean Lusk General Commentary 2 Comments

While talk of weather events in much of the Midwest speak of planting delays, funds remain undeterred comfortably awaiting the supply/demand structure to change. If no demand comes in to alter balance sheets then weather events will be needed to prod funds who sit on a massive 600 K short position to begin to cover positions. Until then its been …

Game Day

Steve Bruce General Commentary Leave a Comment

                                Funds are short and farmer’s are long and the growing season starts getting a little more interesting in May.  We’ll get beyond liquidation ahead of first notice day against the May futures on Tuesday as it is first notice day and the majority of players usually have rolled out. Yet, it has been a bearish influence and the old …

Livestock Report

Ben DiCostanzo General Commentary Leave a Comment

  June Lean Hogs traded in an uninspiring fashion, dipping to a new low at 91.55 and nearly closing the gap from the April 2nd high at 91.50 to the April 3rd low at 92.10. The failure from another attempt to close the gap could only muster a small rally leaving a narrow trading range and a small bodied candlestick. …

More Wheat Acreage?

Steve Bruce General Commentary Leave a Comment

                                Unicorns and rainbows and increased Canadian wheat acreage………Might happen if Mother Nature allows it to happen and the 6 to 10 day outlook remains cool and wet so the acreage increase may not happen next week. Yet, all is well in the world as rain makes grain and the attitude is that we’ll get the crop in the ground …

Livestock Report

Ben DiCostanzo General Commentary Leave a Comment

June Lean Hogs gap opened lower, taking out the 93.525 low from April 10th breaking out of its trading range to a new low at 91.725. A blistering rally off the low took price to the session high at 94.175 then dive bombing and settling at 92.375. This is right at the 92.375 support level. The breakdown in price partially …

Grain Spreads: Shorts Press

Sean Lusk General Commentary Leave a Comment

If we tally up the managed money net short positions in all seven exportable grain contracts as of last week, the total amount of contracts shorts totaled approximately 597,800. This was up from 514,000 the week prior and 440 K two weeks ago. Despite planting delays in much of the Midwest for corn and spring wheat, funds continue to ” …