Ag Hedge Daily Newsletter

1/27/2016
- Good morning from Chicago Get expert perspective on today's Ag markets from some of the most respected names in the industry. Zaner experts have been quoted in Dow Jones Newswires, AgWeb.com, Top
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IMPORTANT NOTICES

OPENING CALLS

January 27: FOMC Meeting

January 28: Export Sales at 7:30am Last Trade Day Jan Feeders
Feb 1: Export Inspections at 10:00am & Grain Crush at 2:00pm
Feb 4: Export Sales at 7:30am
Feb 8: Export Inspections at 10:00am & First Notice for Feb Live Cattle
Feb 9: Crop Production & WASDE at 11:00am
Feb 11: Export Sales at 7:30am
Feb 16: Export Inspections at 10:00am & NOPA Crush at 11:00am
Feb 19: Export Sales at 7:30am & Cattle on Feed at 2:00pm Last Trade Options for March
Chi, KC, MN wheat, corn, soybeans, soyoil, soymeal

Corn:

down 0-1

Wheat:

down 1-4

Beans:

up 2-4

Cattle:
Hogs:
US $:

down .300

Crude:

down .60

GRAINS

52 Week
High

464-0 on
07/14/15

52 Week
High

629-4 on
06/30/15

52 Week
High

1044-2 on
07/14/15

52 Week
Low

348-4 on
01/07/16

52 Week
Low

456-0 on
01/04/16

52 Week
Low

847-0 on
11/23/15

20 Day MA 360-7

20 Day MA 473-0

20 Day MA 871-6

50 Day MA 367-2

50 Day MA 479-4

50 Day MA 874-5

100 Day MA 378-6

100 Day MA 493-4

100 Day
MA

880-7

Corn: ---Night Session Close: March unchanged at 3692 Dec down 02 at 3912
Opening the night session at 3686, March traded to a session low of 3684. Moving average support from the 50 day stands at 3672. Trend line support is holding at 3644 and
again at 3600 with initial support likely from yesterdays low of 3670. Trading to a session high of 3706, trend line resistance is holding at 3704 while the 100 day moving average is
at 3786.
Soybeans: ---Night Session Close: March up 30 at 8794 Nov up 30 at 8904
Opening the night at 8760, March traded to a session low of 8754. The 50 day moving average stands at 8746 and followed by the 20 day at 8716. Recent lows at 8704 may offer
further support. Posting a session high of 8792, the 10 day moving average is located at 8790 and the 100 day stands at 8810. Overhead resistance remains at 888 from the recent

highs.
Wheat: ---Night Session Close: March down 32 at 4814 Sept down 10 at 5026
Opening the night at 4846, March set a session low at 4806. Initial support is likely in the 480 region and in addition to the 50 day moving average at 4794. Further support is
possible at yesterdays low of 4780. Posting a session high of 4856, resistance from yesterdays high comes in at 4884 while trend line resistance stands at 4896. The 100 day
moving average is at 4934.
News:
--- USDA will postpone Export Sales to Friday at 7:30am due to weather.
--- On Tuesday the traditional funds sold 4,000 soybeans, 3,000 soymeal and bought 3,000 wheat and 4,000 soyoil. They are estimated to be net short 28,500 soybeans, 52,800
soymeal, 150,000 corn, 63,000 wheat, and are net long 48,900 soyoil.
--- China plans on allowing the market to determine pricing on Government owned corn stocks rather than continuing with the fixed government price.
--- Russia is considering export restrictions on several crops except for wheat.
--- Argentina is estimated to have 2.0 MMT of soymeal available for export vers 1.0 MMT last year.
--- South Africas corn crop is estimated to be down 25% from their 7.4 MMT production last year.

--- Brian

For more information, questions, or comments feel free to contact us or follow our team on Twitter:
Ted Seifried -- (312) 277-0113 -- tseifried@zaner.com -- @TheTedSpread
Tim Hackbarth -- (312) 277-0110 -- thackbarth@zaner.com -- @AgHedgingone
Brian Grossman -- (312) 277-0119 -- bgrossman@zaner.com -- @AgHedgeGrossman

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MEATS

52 Week
High

156.300 on
06/10/15

52 Week
High

214.150 on
06/11/15

52 Week
High

72.975 on
05/12/15

52 Week
Low

121.975 on
12/17/15

52 Week
Low

143.200 on
12/17/15

52 Week
Low

53.975 on
11/17/15

20 Day MA 132.931

20 Day MA 161.474

20 Day MA 61.319

50 Day MA 131.250

50 Day MA 159.694

50 Day MA 59.245

100 Day
MA

100 Day
MA

100 Day
MA

135.589

169.518

62.854

Its 11:30 A.M. on Tuesday and rumors that Cargill is short bought on cattle are circulating. Source says that cattle bought last week being called for delivery today, tmrw & Thursday.
See how this plays out the rest of the session as cattle markets are near highs of trade session after rumors.
Update at 1:15: JBS in the news. Shares of JBS S.A fall 8 percent after its controller J&F Investimentos and eight others within JBS group/Banco Rural arrested. Story just breaking
.
Midday boxed beef: Choice up .81 cents to $224.60. Still down $11.00 from recent highs.
Cash markets are quiet with no real bids and offers holding $136-$138 as of today.
Feeder Index up .90 to 158.44 on Tuesday.
Outside markets strong today; Dow up nearly 300 points, S&P up 26.00 and crude is up $1.70. I have seen correlation between strong stocks/strong cattle on charts so I keep
mentioning here in newsletter.
National Cattlemens Association meeting this week in San Diego and will certainly be addressing the high frequency trading issue (I will be kind) as well as the transparency of cash
markets going forward. Putting the ducks in what could be considered at least a more orderly row would be a great takeaway from said meetings
Apparently Oklahoma City has a case of the jitters as they showed $3-$4 gains yesterday after two weeks of underwhelming pricing.
Tim

LINKS

Cash Grain Bids

US Weather

South American Weather

In this newsletter we do not email specific trade recommendations. As each client's situation is unique, we craft strategies to fit our individual client's needs. Please feel free to call us
at 312-277-0113 for a personalized recommendation.