Analyst Paul Ebeling of www.livetradingnews.com takes a look at US Agriculture
LTN Closing Grain Comments; Soybean market losses continue, the Soybean chart fell to new depths Friday, dragging the Wheat market down with it, but some friendly news for Corn-based Ethanol allowed that market to post some gains at the end of the session
Bears had the advantage most of the day in the Wheat market and into the close with most contracts ending 4 to 8 cents lower for the day. For the week, Chicago Wheat ended sharply lower and near the bottom of the market’s down trending range.
Corn futures firmed on news the EPA had rejected the Ethanol waiver request on the Renewable Fuels Standard, but corn futures still finished lower compared to last week’s close. On the bright side, Corn futures avoided doing serious technical chart damage this week as nearby contracts respected Key support at the September lows.
Soybean futures did serious technical chart damage this week as futures started the week under sharp pressure and extended losses into today’s close. January beans completed a 75% retracement of the rally from the June low to the Sept. high today, although closed just above this Key level. If violated early next week, bears’ next target will be the June lows.
Lean hog futures ended split with nearby’s 5 to 30 cents higher and deferred months slightly lower due to Bull spreading. Most contracts settled slightly higher for the week. Trading volume across the commodity sector will be light ahead of Thanksgiving. The cash market will likely continue to trend steady to lower as supplies are expanding and packer demand will be limited by a holiday-shortened schedule.
Live Cattle futures strengthened into week’s end as traders evened positions ahead of this afternoon’s Cattle on Feed Report. While no cash cattle trade was reported by press time, live cattle futures posted moderate gains for the week. Most feeder Cattle contracts ended the week slightly below last week’s close. This afternoon’s Cattle on Feed Report came in about as expected, which means traders’ focus will return to cash market prospects and evening positions ahead of Thanksgiving.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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