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Market Commentary

7:30 Outlook for Jan 22, 2018
This market commentary is for informational purposes only. The views and opinions offered in the report are solely those of Bunge Limited and its subsidiaries ("Bunge"). Bunge is not a futures broker and this is not an offer to buy or sell any commodity or futures contract. The information contained in this commentary has been obtained from sources believed to be reliable but is not necessarily all-inclusive and is not guaranteed as to its accuracy. Persons acting on any information contained in this commentary are responsible for their own actions.
7:30 Outlook Commentary 

by: Jody Lefcourt

As of 1/22/18...

Technically Ag prices are higher around the board with strength coming from 1. net fund short positions,  2. chatter in the back-ground about the size of the Argentine bean crop perhaps being lower and 3. concerns over acreage for corn as we begin to move into the new growing season and 4. concerns over dryness in the southern plains impacting wheat.  Point 2 illustrates why meal is so strong, as it certainly has sponsored a number of rallies. 

Tech talk: The laggards in terms of technicals continue to be wheat and soyoil,  This morning, wheat seems to be content once more to travel sideways with March soyoil futures finally gaining some traction to the upside of its new trading range low of 32c.  Meal futures placed a new high at $336.20.  The March corn contract will open up against the same high placed on January 3, which is quite interesting given the 200,000 plus short sitting under the market.  They are watching today's open carefully, though as has been noted in the past when markets close strong they tend to open in the same fashion.   Same case for March beans, where the 200 day moving average crosses at the high of the morning at $9.85 3/4.  If farmers are not there to sell it, look for funds to begin to cover if we cross major levels of key resistance noted - - and frankly, think that is the set-up today.

Calls are as follows:
beans: 6-9 higher
meal:  3.80-4.20 higher
soyoil:  10-15 hgiher
corn:  1 1/2 higher
wheat:  3 1/2-4 higher

Futures / options combined positions:
beans:  net short 93,000
meal:  net long 18,000
soyoil:  net short 14,000
corn:  net short 216,000
wheat:  net short 138,900

In the macro world the markets seem to be shrugging off the government shut-down, however government reports will not be released until we see it re-open.  Crude oil is in the green with a $63.63 /barrel high and the US dollar is weaker.

See you at early call........
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