Grain Spreads: New Lows in Wheat

Sean Lusk General Commentary

Commentary Wheat prices continue to move lower as cheaper Eastern European and Russian supplies get dumped on the market. Therefore, all three domestic wheat classes in order to remain somewhat competitive, will drop in tandem with cheaper origins in Europe to remain somewhat competitive. Since Russia has cancelled the Black Sea corridor out of the Black Sea in late July that enabled Ukrainian …

Livestock Markets rally to Start the Week

Ben DiCostanzo General Commentary

December Lean Hogs gap opened higher, traded down to the low of the day at 70.25, closing the gap and rallied to the session high at 71.925. It pulled back to the middle of the range and settled at 71.175. The rally took price to its highest level since October 10th as traders continued to narrow the discount of futures …

Pure Hedge – Grains

Bill Allen General Commentary

10/28/23 The grain markets were mixed on Friday and for the week. January’24 soybeans were 19 1/4 cents higher on Friday to regain the weeks losses, and settled at 1319 1/4, that’s 3/4 of a cent higher for the week. December’23 corn was slightly higher Friday, up 1 1/2 cents, to settle at 480 3/4, but still ended the week …

Pure Hedge – Livestock

Bill Allen General Commentary

10/27/23 The meats were all higher today but mixed for the week. December’23 live cattle were up 2.900 today and settled at 182.225 but down 2.400 for the week and below the 100-day moving average of 184.485. November’23 feeder cattle were slightly higher today, up 0.400 and settled at 236.900, that’s a loss of 5.325 for the week. December’23 lean …

Hogs and Cattle Rally

Ben DiCostanzo General Commentary

December Lean Hogs opened lower, made the low of the day at 68.225 and rallied the rest of the session to the high at 70.625. It settled near the high at 70.475. The rally took price to its highest level since October 13th as traders put futures continued to narrow its discount to the Lean Hog Index. The cash market …

Grain Spreads: Meal Plan

Sean Lusk General Commentary

It is my belief that today’s push higher in soybeans is all about the Argentina meal story. During quarterly earnings call last week, ADM CEO told investors he expects Argentine crushers to run out of soybeans to crush sometime in November. This is a concern other crusher have expressed due to limited supplies after drought ravaged the 2022-23 crop. U.S. …

Hogs Rally

Ben DiCostanzo General Commentary

December Lean Hogs continued its recovery on Thursday, opening higher and working lower to the low at 67.425 and then reversing direction and rallying the rest of the session to the high at 68.70. It settled near the high at 68.625.  The rally stalled at just under resistance at 68.75, but it broke out above resistance at 67.80 and settled …

Grain Spreads: Creamed Wheat

Sean Lusk General Commentary

Commentary More funds selling seen today with December Kansas City wheat putting a new low for the move and trading down to the lowest level seen since July of 2021. Ouch. Chicago and Minneapolis following that price action but lagging, as those contracts still trade above their late September lows. It is my belief that managed money shorts have defended …

Grain Spreads: Meal Plan

Sean Lusk General Commentary

Commentary Soymeal and soybeans rallied on two fronts today. First, Argentina is running low on soybeans to crush while exportable supply of soybeans in Brazil are nearing sold out per Hightower. Argentina is extending its “soy dollar” program to bring hard currency into its weak economy. Still cash is starting to firm with the expectation that buyers will step in …

Cattle Markets Collapse

Ben DiCostanzo General Commentary

January Feeder Cattle gap opened lower, made the high of the day at 242.325 and fell apart. It crashed and kept on spinning out of control until the end of the session, making the low at 235.30 and settling at 235.70. The gap is from the Monday high to the Friday low at 242.65. The cash market has been falling …