AgResource Weekly Newsletter, Jan 29
In this week’s newsletter, we take an in-depth look at US wheat option volatility.
Soybeans Trade in a Narrow Range, Close Lower
Tuesday was an exceptionally slow day of trade in the CBOT soy market that left futures 4-5 cents lower at the close. Chinese trade negotiations resumed in Washington, but traders are hesitant to add to positions during the meetings. Moreover, the trade is anxiously waiting for USDA weekly sales data updates, that hopefully begin with…
World Soymeal Consumption and Trade
While the CBOT Ag Trade has been intently focused on world soybean production and trade over the last 6-8 months, world soymeal demand has continued to expand. The chart reflects the USDA’s December estimates that called for total world soymeal demand to increase by nearly 10 MMTs in 2018/19. Chinese meal consumption is expected to…
Hogs Close Mixed, Summer Futures Mark New Lows
Mixed trade unfolded across the hog market, with April hogs finding early morning support and closing firm while June could not hold onto early gains and finished the day in the red. The hog index was $.28 lower at $58.22, and we estimate $.32 lower for Wednesday. The cash index has been lower this…
Funds Sell Wheat Following Egypt Tender Result
The US and world wheat markets closed in differing directions as fund selling pounded US wheat futures, while the Black Sea and EU wheat markets both rallied. Chicago Mar wheat traded over 72,000 contracts while KC Mar wheat traded 32,000 contracts, their best volumes so far in 2019. Cash connected firms were the reported…
