November 7 Market Talk


The corn was firm yesterday and traded on both sides of unchanged overnight, so there is still no indication that the corn market is going to do anything besides trade sideways and consolidate at the bottom end of the trading range.ã?? Tomorrow is the Export Sales Report and Friday is the Supply and Demand Report, so we will have some fresh news to trade, but for the time being, analysts plan on a choppy/higher trade and a possible move to $7.50 in the December contract ahead of Friday's report.



The wheat market is firm.ã?? The December Kansas City has made a new high fo rthe moe and the July contract has reached the highest level since May of 2011.ã?? Crop conditions are poor and getting worse in many areas, which is keeping the buying interest alive the new crop wheat.ã?? If we would ever begin exporting wheat consistently, this market would become explosive.


The soybeans continue to consolidate near the recent lows.ã?? The news is all the same.ã?? Traders are waiting to see how much production is increased in Friday's report.ã?? Tomorrow's Export Sales Report should be very good, say analysts, but may not have much market impact with the Supply and Demand numbers coming out the following day.ã?? Analysts plan on a two sided trade today and tomorrow.


Live Cattle futures posted moderate gains on Tuesday, with boxed beef prices moving significantly higher.ã?? Overnight trade has been narrowly mixed, with some spillover weakness from soft equity markets.ã?? This week's cash trade is now expected to come late in the week, with asking prices remaining $128 in the south and $198+ in the north.ã?? The wedge formation on the December daily charts is squeezing tighter by the day.ã?? Certainly something to be watched........


Feeder Cattle futures closed near steady on Tuesday, with a slightly lower bias.ã?? That pattern is continuing in overnight trade, with deferred months as much as .30 lower.ã?? corn is marginally higher ahead of Friday's Supply and Demand Report.ã?? Chart patterns remain negative for the Feeders say analysts, with decent support levels approaching on any 100 point breaks.


December crude oil prices trended lower throughout the early morning hours, giving back around 1% of yesterday's gain in the process. The outside market tone presented a negative influence for crude oil, with a rebound in the US dollar and weakness in global equity markets. With the US election out of the way, outside market focus turns to the looming US fiscal cliff, as well as today's Greek austerity vote. Some in the trade view the failure to pass new austerity measures in Greece as a factor bringing them closer to default, that could put more pressure on global oil demand. Expectations for this morning's EIA inventory report are for crude stocks to have increased last week in the range of 1.5 to 1.75 million barrels, largely from the drop in refinery demand in the wake of Hurricane Sandy.

There is substantial risk of loss to futures and options trading. Past performance is not indicative of future results.

By Donna Hughes

Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchangeâ??s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.

Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. Oâ??Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.