Schwieterman: Feeder cattle futures closed sharply lower on Tues.

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Corn Estimated Fund Position

Trends – December Contract

Short Term:Down Net Long Futures and Options: 4099

Long Term: Down Change: -4000

Overnight Trade: Z -2 @7:30 AM

The corn pushed to new lows overnight, but the December contract is still holding above $4.00 for the moment. It is beginning to look like we will see mostly sideways to lower trade ahead of the supply and demand report and we probably won’t see another major push lower until the numbers are out. Without a major change in the weather it is difficult to expect anything besides a down trending market.

Wheat Estimated Fund Position

Trends – December Contract

Short Term: Down Net Long Futures and Options: -65621

Long Term: Down Change: +500

Overnight Trade: Chicago: Z -3 KC: Z -4 @7:30 AM

Wheat also pushed to a new low for the move overnight. The Egyptians have tendered for wheat again and chances are low that we get any of the business, which will keep traders talking about US wheat being overpriced. On the other hand the recent export sales reports have been better than what we need, so demand is not completely dead. Friday’s numbers could be friendly for the wheat, but the corn and bean market may act as an anchor anyway.

Soybeans Estimated Fund Position

Trends – November Contract

Short Term: Down Net Long Futures and Options: -45438

Long Term: Down Change: -4500

Overnight Trade: X -7 @7:30 AM

The November soybeans are closing in on $11.00 and one should expect to see the market hit that number at some point this week. Basis levels are very strong relative to the August contract, so there is potential for a turn in that market and a return to bull spreading, but those spreads have been crushed lately, which will keep buyers at bay. The new crop contracts have benefited greatly from the bear spreading, so if that comes to an end, the selling pressure will be very heavy in the November contract.

Live Cattle

Trend

Short Term: Up

Long Term: Up

Opening Calls: Higher

Live cattle futures closed mixed on Tuesday, with the front month off 1.42 and December up .15 for the day. For a second consecutive day live cattle were unable to sustain early strength in the market. Overnight trade is seeing a complete recovery in the cattle, with a bit of higher cash being sprinkled throughout the north. The ebbs and flows of this historic bull market continue to tease the bears with a day or two of selloff but struggles to find follow through. Boxed beef was higher on Tuesday and remains at or near record levels.

Feeder Cattle

Trends

Short Term: Up

Long Term: Up

Opening Call: Higher

Feeder cattle futures closed sharply lower on Tuesday, with losses of as much as 2.10 in the lead August contract. Overnight activity is recovering a majority of Tuesday’s selloff, with August up 1.60 as we write. Cash index levels have been on a decline for the past few days but are expected to rebound through the remainder of the week. Corn is putting in new lows this morning, which should be solid support for the feeders.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


AG10 Series Silage Defacers

Loosen silage while maintaining a smooth, compacted bunker space resulting in better feed and less waste. This unique tool pierces, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight