MAR BEANS

(Click on image to enlarge)

Bearish headwinds have dominated the mkt all Fall – including a predicted record Brazilian Bean Crop & potential tariffs implemented by Trump once he’s inaugurated! However, the “script seems to have flipped” with increasing dryness in Argentina rallying the mkt this week with more to come if Argentina stays dry into mid-Jan! Plus, the record Brazilian crop seems to be baked into the price structure! As well, record fund longs in meal are supporting the mkt on breaks! Export inspections & sales have been solid & every week, flash sales are announced! The result has been a 60 cent rally from the Dec lows! Cash sales are inevitable after the 1^st but the trend is up! Apparently 4-yr lows were enough to uncover substantial demand!

MAR CORN

(Click on image to enlarge)

Higher highs & higher lows speak volumes on the Corn Dailys – as the mkt recently breached 6 month highs & surpassed the 200 day moving average! Both foreign & domestic demand has been abundant but the mkt is still relatively cheap – only in the mid-4’s! Macro positives have surfaced in the last few months underpinning the rallies – including lower IR’s & future economic promise from Trumps resounding victory in November!

MAR WHT

(Click on image to enlarge)

Mar Wht has long been plagued by Russia’s wht abundance but that worm may have finally turned as their crop was substandard this year & their exports have dropped off! Plus, world wht trade has been robust & the US Winter Wht crop is vulnerable to dryness! An assist from spill-over support from corn/beans will also underpin Mar Wht! Finally, the price – like corn & beans – is hovering just over 4-yr lows!

FEB CAT

(Click on image to enlarge)

Feb Cat continues to be the gift that keeps on giving! This week, supported by strong cash & frigid climes due after the Jan 1st, the mkt is consolidating right off contract highs! First quarter seasonals favor more upside! Holiday demand has buttressed the mkt! Macro factors – including 3 IR cuts & Trumps dominant win in Nov – further support the mkt on breaks!

FEB HOGS

(Click on image to enlarge)

Feb Hogs have morphed into a technical disaster – violating the 2-month congestion (82–86) on the downside yesterday – following thru down today to confirm the breakout! There are no glaring fundamentals to explain the downside breakout – other than a record long OI – ready to exit on any sign of &trouble! It’s unusual during the current holiday season with decent demand – especially for the lower priced pork & cattle holding firm! But exports have been dismal – with China plenty well stocked domestically!

More By This Author:

AgMaster Report - Wednesday, Dec. 11
AgMaster Report - Monday, Dec. 2
AgMaster Report - Tuesday, Nov. 19