Ag Hedge Daily Newsletter

2/12/2016
- 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 16: Export Inspections at 10:00am & NOPA Crush at 11:00am

Feb 19: Export Sales at 7:30am & Cattle on Feed at 2:00pm Last Trade Options for March Chi, KC, MN wheat, corn,
soybeans, soyoil, soymeal
Feb 22: Export Inspection at 10:00am
Feb 23: Cold Storage at 2:00pm
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 0-1

Wheat:

up 2-3

Beans:

down 1-2

Cattle:
Hogs:
US $:
Crude:

up .400
up 1.50

GRAINS

52 Week
High

464-0 on
07/14/15

52 Week
High

629-4 on
06/30/15

52 Week
High

1044-2 on
07/14/15

52 Week
Low

348-4 on
01/07/16

52 Week
Low

455-0 on
02/09/16

52 Week
Low

847-0 on
11/23/15

20 Day MA 366-6

20 Day MA 471-4

20 Day MA 875-0

50 Day MA 366-2

50 Day MA 474-6

50 Day MA 875-5

100 Day MA 375-7

100 Day MA 490-6

100 Day
MA

879-6

Corn: ---Night Session Close: March down 02 at 3600 Dec unchanged at 3826
Opening the night at 3610 and trading to a session low of 3594; March may find support near yesterdays session low of 3584 in addition to trend line support near 3586. Further
support is possible in the 357 area and followed by the 3494 double bottom. Posting a session high at 3612, resistance is possible from yesterdays session high of 3632 with
additional resistance from the moving averages clustered 365 to 367.
Soybeans: ---Night Session Close: March down 16 at 8716 Nov down 16 8860
Starting the night at 8730, March traded to a session low of 8712. Trend line support may be found near 8704 while the recent Feb-09 low of 8594 may offer further support before

reaching the Jan-06 low of 8520. Posting a session high at 8754, resistance from the 50 day moving average stands at 8754 while the 20 day is at 8750 and the 100 day at 8796.
Wheat: ---Night Session Close: March up 24 at 4606 Sept up 22 at 4802
Opening the night on trend line support at 4586, March posted a low at 4584. Additional support stands at the fresh Feb-09 contract low of 4550 and psychological support is
possible at the 450 mark. Posting a session high of 4612, yesterdays session high of 4656 may offer initial resistance before reaching the 10 day moving average at 4666. The 50
day moving average stands at 4746.
News:
--- The National Weather Services Climate Prediction Center said that their models show a weakening El Nino in the Northern Hemisphere later this spring/early summer and may
transition into La Nina later this year.
--- After falling for 12 straight sessions, the Baltic Exchanges main sea freight index for tracking ships carry dry bulk commodities ended Thursday flat at 290 points. The lowest level
since records began in 1985. Down from the May 2008 high of 11,793.
--- The Federal Reserve Banks of St Louis and Kansas City forecasted farm income to fall for the third straight year and sees a surging demand for bank loans, extensions, and
renewals.
--- Crude found support on talk that Russia and Saudi Arabia may discuss production control in the future, however Saudi Arabia will only agree if Iran does as well.
--- A Russian ban on US corn and soybean imports is to take effect on Feb-15, claiming to have found 64 cases of bacterial contamination which currently are not present in Russia.
--- South Korea rejected all offers ontheir tender of 130,000 MT of corn stating prices were too high.
--- On Thursday the traditional funds bought 9,000 soybeans, 3,000 soymeal and 6,000 soyoil; sold 4,000 wheat. They are estimated to be net short 26,500 soybeans, 41,800
soymeal, 80,000 corn and 65,000 wheat and estimated to be net long 53,900 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

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MEATS

52 Week
High

156.300 on
06/10/15

52 Week
High

214.150 on
06/11/15

52 Week
High

72.975 on
05/12/15

52 Week
Low

121.975 on
12/17/15

52 Week
Low

143.200 on
12/17/15

52 Week
Low

53.975 on
11/17/15

20 Day MA 132.815

20 Day MA 161.093

20 Day MA 64.280

50 Day MA 131.721

50 Day MA 159.532

50 Day MA 61.159

100 Day
MA

100 Day
MA

100 Day
MA

134.606

168.726

62.529

Cash has traded each of the last two days in Kansas/Texas first at $134 then some smatterings of $133 today. Initially, owners wanted $136 this week but the futures have changed
their tune. The market staying ahead of the down curve and remains $3.00/$4.00 discount to cash. Front-month February cattle expire at months end and the $3/$4 spread of
cash/futures will tighten.
Boxed beef: Choice down .99 to 217.20. The two steps lower, one step up action continues which is not too supportive for beef. Cant expect uptick in demand when consumer
sentiment is negative from falling markets.
Asian, Euro and U.S. markets taking a beat down will not lend to higher priced commodities. A prolonged slowdown in China among worst case scenarios.
Grain prices still remain generally weak will serve as supportive to feeders.
Feeder Index down .70 to 158.79.
December beef exports came in at 196.056 million pounds, down from 202.1 million in November and down 7.6% from year-ago levels.
A negative indicator was given with the downside crossover of the 9 and 18 bar moving average. Declining momentum studies in the neutral zone will tend to reinforce lower price
action. The market's close below the 9-day moving average is an indication the short-term trend remains negative.
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.