Ag Hedge Daily Newsletter

2/24/2016
- 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
Producer, CME, CBOT & MGEX exchange publications, Futures Magazine, Stocks and Commodities Magazine, Forbes, BarChart.com, Tradingmarkets.com, CommodityTrader.com,
Financial Engineering News, Risk Controlled Investing and many other publications. Feel free to call us at: 312-277-0113 for more information.
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Note: Futures, options and forex trading is speculative in nature and involves substantial risk of loss. This material is conveyed as a solicitation for entering into a derivatives
transaction.

IMPORTANT NOTICES

OPENING CALLS

Feb 25: Export Sales at 7:30am

Feb 28: Export Inspections at 10:00am First Notice for March Chi, KC, MN wheat, corn, soybeans,
soyoil, soymeal

Corn:

down 1-2

Wheat:

down 1-2

Beans:

down 1-2

Cattle:
Hogs:
US $:

up .200

Crude:

down 1.00

GRAINS

52 Week
High

468-4 on
07/14/15

52 Week
High

631-2 on
06/30/15

52 Week
High

1034-0 on
07/14/15

52 Week
Low

354-2 on
01/07/16

52 Week
Low

452-6 on
02/24/16

52 Week
Low

853-4 on
11/23/15

20 Day MA 370-2

20 Day MA 470-2

20 Day MA 877-6

50 Day MA 369-7

50 Day MA 476-7

50 Day MA 877-1

100 Day MA 379-2

100 Day MA 492-1

100 Day
MA

883-3

Corn: ---Night Session Close: May down 12 at 3654 Dec down 12 at 3846
Opening the night at 3664, May corn is continuing to slide with a session low of 3652. Falling through all the supportive moving averages, trend line support might be found near
3644 before reaching the Feb-11/12 double bottom of 3632. The 362 region may also offer support in addition to trend line support near 3614. Posting a session high at 3666,
initial resistance is likely from the 10 day moving average at 3676 while the 20 and 50 day stand near 370.
Soybeans: ---Night Session Close: May down 12 at 8716 Nov down 10 at 8812
Starting the night at 8732, May posted a low at 8702. Falling below the previous session low of 8712, trend line support may be found near 8654 while the Feb-09 low stands at
8634 with further support likely in the 860 region. Posting a high at 8740, initial resistance is possible in the 875 region with a moving average cluster consisting of the 10, 20, and 50

day are stacked from 877 to 878 and the 100 day stands at 8834.
Wheat: ---Night Session Close: May down 14 at 4542 Sept down 12 at 4746
Opening the night at 4554, May traded to a new contract and 52 week low of 4526. Support is likely in the 450 region with a March spot low 4442. Posting a session high at 4562,
trend line resistance may be found at 4590 while the first moving average is the 10 day at 4644.

News:
--- USDA Ag Outlook Conference Average Estimates -- Bloomberg
Corn acres 89.689; range 88.3-92.5; production 13.719; 16/17 ending stocks 1.891
Soybean acres 83.345; range 82-85; production 3.821; 16/17 ending stocks 516
Wheat acres 52.374; range 51-56; production 2.015; 16/17 ending stocks 1.005
--- Reuters Poll 2016 Acres
Corn 89.6 million
Soybeans 83.3 million
--- USDA reports 110,000MT of corn to Colombia for 15/16
--- On Tuesday, the traditional funds sold 11,000 soybeans, 3,000 soymeal, 6,000 soyoil, 15,000 corn and 6,000 wheat. They were estimated to be net short 46,500 soybeans, 44,800
soymeal, 146,000 corn and 97,000 wheat; estimated net long 50,900 soyoil.
--- China DDG imports down 30% for January.
--- Chicago wheat prices have fallen to their lowest point since June of 2010 as large inventories weigh on Chicago and foreign markets.
--- 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

155.100 on
06/23/15

52 Week
High

213.075 on
06/01/15

52 Week
High

82.525 on
07/07/15

52 Week
Low

123.050 on
12/17/15

52 Week
Low

142.550 on
12/17/15

52 Week
Low

70.250 on
11/16/15

20 Day MA 133.458

20 Day MA 154.686

20 Day MA 80.036

50 Day MA 132.712

50 Day MA 155.431

50 Day MA 78.381

100 Day
MA

134.376

100 Day
MA

162.782

100 Day
MA

77.339

Cattle prices have been slightly stronger the first two days this week but seem reluctant to push up through resistance with confidence. Perhaps that can change next week when the
February contract expires but for now, look for range bound trade.
Top end of cash trade last week was $134. Offers are holding at $138 for now but remember as we are in final days of Feb contract, cash and futures converge which reiterates my
point of range bound trade. February cattle at $136.45 has $2.50 premium to best cash last week so unless cash comes up, dont look for aggressive move on board.
Boxed beef has shown a little uptick so far this week. Tuesday afternoon cutout was up 1.86 to 215.14. The rather stagnant cutouts telling us that demand is flat lined for now.
Cold Storage report yesterday showed largest beef in storage since Nov 2006. So far the board hasnt so much as blinked after seeing these numbers.
Feeder Index up .17 to 158.27 on Tuesday.
Still cant help but pay attention to how beef prices have mirrored stock market of late. Can/will this continue? So goes the Dow so does the cow??
Consumer Confidence readings are an important gage for consumer spending on higher-priced beef cuts and for restaurant traffic. The Confidence reading came in at 92.2 for
February, the lowest since July and compared with 97.8 in January.
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.