Grain and Cattle Wreck?
Presented by Heartland Investor Capital Management Inc. CTA
Crude Oil and Iran:
Crude oil whipsawed on Iran headlines, rallying above $102 before collapsing $5 to $6 after talk of a possible proposal framework.
President Donald Trump later supported prices again by reiterating the U.S. would ultimately secure or destroy Iran’s nuclear capabilities.
Markets remain highly sensitive heading into the three day weekend.
Brazil Weather:
Brazilian safrinha corn areas remain very dry with forecasts continuing to disappoint.
Analysts are increasingly discussing production losses of 5 to 7 million metric tons from earlier crop projections.
Corn:
Corn futures faded late after crude oil collapsed midday, though export sales remained extremely strong at over 2 million metric tons.
Technical support continues holding near the 200 day moving average and major trendline support.
Brazil weather, energy markets, and China headlines remain major drivers.
Soybeans:
Soybeans pulled back as China still has not officially reduced tariffs or confirmed large scale buying commitments.
Technical support remains near the 1170 to 1176 zone while 1180 remains important resistance.
Wheat:
KC wheat weakened again with harvest pressure and corrective trade continuing to weigh on the market.
Longer term outlook remains supportive because of expected fertilizer shortages and declining global production potential.
Cattle:
Live and feeder cattle futures broke major support levels with technical selling accelerating lower.
Rumors of increased Mexican beef exports and possible Brazilian beef flowing indirectly into U.S. channels added pressure.
Charts continue pointing toward a larger topping structure in feeder cattle.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable to Heartland Investor Capital Management, Inc. but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK of LOSS involved in trading futures and / or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. The information contained in this newsletter is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. Provided by Heartland Investor Capital Management, Inc. a registered CTA with the NFA, of which Eugene Graner is principal. This entity is a separate legal entity from the Introducing Broker Heartland Investor Services.