Ag Hedge Daily Newsletter

2/17/2016
- 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 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:

down 0-2

Beans:

down 1-3

Cattle:
Hogs:
US $:
Crude:

up .150
up .70

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
02/12/16

52 Week
Low

847-0 on
11/23/15

20 Day MA 366-4

20 Day MA 470-3

20 Day MA 874-7

50 Day MA 365-7

50 Day MA 474-3

50 Day MA 874-7

100 Day MA 375-2

100 Day MA 489-7

100 Day
MA

879-7

Corn: ---Night Session Close: March down 04 at 3624 Dec down 06 at 3850
Opening the night at 3626 and posting a low at 3622, March trend line support stands at 3586 and followed by the recent low of 3582 from Feb-12. Further support is possible in
the 357 region and followed by the double bottom at 3494 before testing the contract low which stands at 3484. Posting a session high at 3630, yesterdays session high of 3634
may offer initial resistance while 50 day moving average stands at 3656.
Soybeans: ---Night Session Close: March down 10 at 8786 Nov down 26 8882
Starting the night at 8790, March traded to a session low of 8766. Moving average support is likely from the 20 and 50 day at 8746 while trend line support stands at 8712; along
with the 10 day moving average. The recent low from Feb-09 stands at 8594. Trading to a session high of 8802, resistance is likely in the 880 region and in addition to the 100 day

moving average at 8796. Yesterdays session high of 8826 may offer resistance and is followed by the Feb-02 high of 8894.
Wheat: ---Night Session Close: March down 06 at 4634 Sept down 12 at 4820
Opening the night at 4636 and posting a low at 4624, March may find trend line support near 4566 while yesterdays session low remains at 4596. Further support is possible at the
double bottom on the contract low of 4550 and followed by the supportive region of 450. Setting a session high at 4646, initial resistance comes from the 10 day moving average at
4640 while the previous session high stands at 4650. Further resistance is likely from the 20 day moving average at 4702 while the 50 day stands at 4742.
News:
--- NOPA Crush showed Jan crush at 150.5 million bushels vers the 154.0 expectation and 163.0 this time last year. Soyoil stocks reported as 1.526 billion pounds.
--- Egyptian officials have rejected 8,000 MT of Canadian spring wheat due to high levels of ergot contamination.
--- China is seen as preparing to sell part of their aging corn stocks to end users for ethanol and starch production.
--- Iran continues to resist an oil production deal among leading oil producers in OPEC and non-OPEC countries as they fight to regain market share. A meeting between Venezuela,
Qatar, and Iraq is taking place in Tehran for further discussion.
--- On Tuesday, the traditional funds bought 6,000 soybeans, 3,000 soymeal, 7,000 corn, 3,000 wheat, and sold 2,000 soyoil. They are estimated to be net short 62,500 soybeans,
45,800 soymeal, 94,000 corn, 78,000 wheat, and estimated net long 45,900 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 133.055

20 Day MA 161.093

20 Day MA 64.460

50 Day MA 131.654

50 Day MA 159.532

50 Day MA 61.282

100 Day
MA

100 Day
MA

100 Day
MA

134.438

168.726

62.496

Cattle futures came out of the long 3-day weekend with a bang, closing up the daily limit and putting some hope that cash may not be weaker this week.
Cash prices have been on the defensive the last couple weeks but with todays sharp move higher there is a little optimism for steady/better cash this week. Cash traded in a wide

range ($128-$134) last week which was down from $134/$136 the prior week. Did see an early 131 bid out of TX this morn.
Cutouts remain listless and are ever so gradually trending lower. Tuesdays midday boxed beef came in at 215.16, down .13 from prior day and down from 220.60 week ago.
Feeder Index down .66 to 156.94 on Tuesday.
When speaking of beef demand, February is not peak demand window by any stretch and the messy weather of late only punctuates that. Pork prices had been enjoying a long
steady climb but have recently stifled which isnt supportive for beef prices to tag along.
Beef production last week reached 452 million pounds, up 2.5% from last year as heavier weights are helping with overall production numbers.
Once the futures filled gaps on the charts, short covering began and ran the board to limit up. At $132.95 (limit up today), the front-month February cattle contract is priced near top
end of last weeks cash and could very well have seen the most move we see all week. With only a couple of weeks left on the Feb contract, the cash and futures will find a way to
converge.
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.

IMPORTANT NOTICES

OPENING CALLS

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:

down 0-2

Beans:

down 1-3

Cattle:
Hogs:
US $:
Crude:

up .150
up .70