The December Lean Hogs contract made an early attempt to retrace some of Tuesday’s decline trading up to 68.50 for the session high. The rally fizzled and price broke down and traded down towards support at 66.55 and making the low just above it at 66.75. It staged a rally at the end of the day and settle at …
Grain Spreads: Spreads For Consideration
March 20/Dec 20 Corn: This spread has bounced 8 to 9 cents from last weeks lows and maybe poised for a further run. Farmers are starting to report their initial yield results and they are mixed/variable. Its far too early for any real US yield trends, and of course, their reported yield findings to NASS are always questioned, especially this …
Ag Thoughts
The soy is a bit back and forth. The key aspect to watch in the market may be the crush and oil share. The soy is pressured due to the prolonged summer weather. The late seeded beans will most likely be able to reach maturity. This bodes well for yield. In addition, the SA weather looks to improve in the …
Livestock Report
The December Lean Hogs contract is now the lead contract as its volume has overtaken the October contract’s volume. The December contract broke down hard, reversing Monday’s strong rally and going limit down for the trading session. It settled at 67.675 which is below the 67.80 support level. A continuation lower could see price test support at 66.55. Support then …
Livestock Report
The October Lean Hogs contract reversed course, closing one of its gaps in the process. The break down took price down to the Thursday high at 63.175 where it found support and a slight recovery saw it settle at 63.625. It settled just above the 63.325 support level and could key the price action for Tuesday. If settlement holds, price …
Grain Spreads: Can This Rally Hold?
Old crop/New crop corn and bean spreads firmed this week on short covering amid yesterdays grain rally. Despite a bearish corn report and neutral report on wheat, beans surged higher on positive trade war vibes and noise. Chicago wheat continues to keep an abnormal pricing disparity vs KC wheat while it has tightened vs Minneapolis. We feel that there is …
Ag Thoughts
The usda report offers some opportunities perhaps. Like all opportunities grab them while you can. The soy carry was reduced to 640, mostly due to a reduction in yield. It is premature to reduce to much. The 640 carry looks better than the 755. The Chinese are buying and looking at the PNW. This is supportive. The Vegoil markets have …
Bean and Corn Game Plan Long Term
I think it’s time to consider we sell a few put spreads either in July 2020 Beans or Sep/Dec 2020 Corn. These take in sizable credits and can be used to finance puts for in the next 90 to 120 days. July 2020 Soybeans Sell the 10.00/11.00 July 20 put Spreads at 88 to 90 cents into the report collecting …
Position Squaring
The 6 to 10 day is warmer and wetter than normal for the Heartland and this is good for maturity of the corn and bean crops and moisture is not impeding harvest, yet! We’re still a couple of weeks away from the fly free date and soft red wheat seed sales are reported to be a little higher in the …
Regroup
The NWS says warmer and wetter than normal in the Heartland in its last 6 to 10 day forecast. A very positive outlook for crop development as we may gain a little more time for this growing season. And moisture is welcome at this time! A month from now we’ll have a better handle on yields as Mother Nature is …