Ag Hedge Daily Newsletter

2/26/2016
- 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.
Learn more about our Ag Hedge services
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 29: Export Inspections at 10:00am First Notice for March Chi, KC, MN wheat, corn, soybeans, soyoil, Corn:
soymeal
Wheat:
March 1: Grain Crushing at 2:00pm
March 9: Crop Production/WASDE
Beans:

down 0-1
up 0-1
up 0-2

Cattle:
Hogs:
US $:
Crude:

up .400
up 1.10

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

446-4 on
02/24/16

52 Week
Low

853-4 on
11/23/15

20 Day MA 369-0

20 Day MA 467-5

20 Day MA 876-5

50 Day MA 369-0

50 Day MA 475-1

50 Day MA 876-5

100 Day MA 378-2

100 Day MA 490-5

100 Day
MA

883-0

Corn: ---Night Session Close: May down 04 at 3600 Dec down 06 at 3790
Starting the night at 3606, May traded to a session low of 3600. Support is likely at the previous session low and supportive region of 3600 with further support likely near 3570.
Additional support is holding at the contract low of 3542. Trading to a session high of 3614, trend line resistance stands at 3612 while further support is possible near 3664; in
addition to the 10 day moving average there as well. The 20 and 50 day moving averages both stand at 3690.
Soybeans: ---Night Session Close: May up 14 at 8670 Nov up 16 at 8784
Opening at 8664, May posted a session low at 8662. Trend line support stands at 8656 while the previous session low is at 8650. Additional support may be found at the Feb-09
low of 8634 as well as the supportive 860 region. Posting a session high at 8690, trend line resistance may be found at 8730 while the previous session high stands at 8762 and
additional resistance at 8770.

Wheat: ---Night Session Close: May up 14 at 4554 Sept up 10 at 4740

Trying for its second higher high and higher lower after new contract low, May opened the night at 4550 and traded to a low of 4530. Trend line support stands at 4526 while the
contract low of 4464 is next for support. Trading to a session high of 4560, resistance is from the previous session high stands at 4560 before reaching the 460 region which may
offer additional resistance.

News:
--- USDA Projections
Farm Exports at 125 Billion
Corn price of 3.45/bu with acres are 90 million
Estimated yield of 168 and ending stocks of 1.977 billion
Soybean price at 8.50/bu with acres at 82.5 million
Estimated yield of 46.7 and ending stocks of 440
Wheat price at 4.20/bu with acres at 51 million
Estimated yield of 45.9 and ending stocks of 989 million
--- Brazils Agroconsult estimated Brazils 2016 soybean crop near 101.6 vers 99.2 with harvest progress near 40%.
--- Agroconsult also estimated Brazils first corn crop at 28.5 vers 27.9 previously and the second corn crop is estimated at 58.8 vers 57.7 previously.
--- April crude oil has rallied to test the 50 day moving average at 34.35. This is the first test of the 50 day since Nov-15-2015.
--- On Thursday, the traditional funds sold 8,000 soybeans, 3,000 soymeal, 4,000 soyoil and 13,000 corn while buying 3,000 wheat. They are estimated to be net short 52,500
soybeans, 47,800 soymeal, 161,000 corn, 96,000 wheat, and estimated net long 44,900 soyoil.
--- 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

Zaner Ag Hedge is now on Facebook!

Please Like our page at www.Facebook.com/Zaner-Ag-Hedge-756769087789084
Looking for additional commentary, market quotes, blogs, charts, technical analysis and more? Contact us for your free trial to Markethead, or sign up at www.markethead.com

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 133.700

20 Day MA 154.634

20 Day MA 80.124

50 Day MA 133.083

50 Day MA 155.710

50 Day MA 78.587

100 Day
MA

134.461

100 Day
MA

162.628

100 Day
MA

77.361

Cattle prices continuing to the upside on Thursday amongst improving cutouts and hopes of higher cash trade. The improving cutouts put packers in better position to bid more
aggressively for nearby needs.
Top end of cash last week was $134. There has been very small smattering of $134/$135 to this point on the week. Not enough to say that true cash is established IMO. Gains in both
cutout & futures should be supportive to asking prices holding at $138.
April cattle futures traded to highest price since January 6th on Thursday.
Boxed beef up .98 at midday to 218.70. This is up from 214.35 prior week. Looks as though smaller kill numbers last week were not enough to appease demand.
Traders are suggesting that with Easter coming early (during late March) this year, retailers are focusing on early April as the start of "grilling season" and are already starting to buy
ahead for their weekly specials. Supportive.
U.S. beef export sales for the week ending February 18 came in at 12,500 metric tonnes, above the prior 4-week average of 11,850. Cumulative sales for 2016 have reached 160,000
metric tonnes, up 3.0% from last year's pace.
At the USDA Outlook Forum this morning, beef production was forecast at 24.6 billion pounds, up 3.8% from 2015. This is in-line with the February monthly supply/demand report
calling for 24.58 billion pounds.
From the same presentation: The average US steer price is expected to fall to $137.0/cwt, down 7% from 2015.
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.