The December Lean Hogs contract broke out above the September 17th high (70.60) on the continuous trading to a new high at 71.575. This is within the 71.325 – 71.80 resistance zone. There is also trendline resistance at 71.975 just above this zone. It settled at 71.40. This is a critical area for Hogs. A break out above this …
Grain Spreads: Take the Collection
Interesting times here across all market sectors. Grains have been no exception. Early frost/freeze events that might of caused sizable reductions in production for corn and beans this year hasn’t shown up. We have burdensome ending stocks currently and yet the market wont break. Recent demand has been good. China most recently have been in with some good will purchases …
play the long ball
The soy is bouncing and has some reason to at present, given the Chinese purchases and the weather concerns. The soy yields are something to watch as harvest gets underway. This of course will be important . It is equally important to remember the global soy situation remains more than ample. The SA planting has some weather concerns. However, it …
Livestock Report
The December Lean Hogs contract rallied off of support at 66.55 and traded past the declining 50 DMA (68.65) with the high at 68.875. It settled below the 50 DMA at 68.375. Positive trade news instigated the positive move. The failure to settle above the 50 DMA keeps the moving average as the key to trade for Tuesday in my …
Livestock Report
The December Lean Hogs contract made an early attempt to rally as positive trade news sparked some buying. The rally stalled just above the 50 DMA (68.90) at 69.075. Price then grinded lower and then accelerated to go down limit for the low of the day at 64.95. The lower limit move came about as the Chinese canceled a …
Grain Spreads: Choppy Two Sided
It looked as if grains could sustain the rallies from last week and earlier this week. However positive trade talk that filled the airwaves and social media on top of new AG purchases by China for future shipment seemed like a distant memory by today’s close. Beans were the biggest loser losing 10 cents in November today while corn and …
Global Shifts
There are potentially some shifts going on globally that could have lasting implications. The macro outlook in oilseeds presents a very competitive scenario. The crush rate should prove to do two things. The first is a pressure on crushing margins. The second is a environment where oil share gains. This week oilshare hovered in the 33% level. The long term …
Livestock Report
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 …