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Agricultural Markets Pre-WASDE


  • A delayed USDA report, but trade Is the key.
  • Soybeans sit at over $9.00 per bushel.
  • Corn trades around $3.80.
  • Wheat held back on weak KCBT prices.
  • Cotton and meats look for direction.
  • Looking for more? I update all of my investing ideas and strategies to members of Hecht Commodity Report. Get started today »

The partial government shutdown caused a cancelation of the January World Agricultural Supply and Demand Estimates report. Each month the WASDE report from the US Department of Agriculture releases the gold standard for fundamental data in the markets that feed the world.

With the end of the winter season on the horizon, farmers in the US are now making their plans for the 2019 crop year. The planting season will commence in early spring, and during the first months of the year, farmers make decisions on how best to utilize their acreage. Since December, the grain and other agricultural markets had been operating in the dark given the lack of the USDA's fundamental guidance. Futures markets have been moving on weather reports from South America, news on the trade dispute, and private estimates on supply and demand in the absence of January's monthly WASDE report.

The USDA is back up and running and this Friday, on February 8, the agency will release its first report for 2019. Given the potential for another shutdown, it is still up in the air if the USDA will be operational at the time of the March report. Therefore, the February WASDE has a special significance this week, and the markets are anxiously waiting for the fundamentals that will guide the agricultural sector and the path of least resistance for prices over the coming weeks and perhaps months.

The Invesco DB Agriculture ETF product (NYSEARCA:DBA) contains many of the commodities that will be the subjects of the February 8 WASDE report.

A delayed USDA report, but trade is the key

After the recent blast of the coldest temperatures in a generation across the fertile plains of the US, temperatures have warmed, the groundhog told us the spring would arrive sooner than later this year, and farmers are hard

The Hecht Commodity Report is one of the most comprehensive commodities reports available today from the #2 ranked author in both commodities and precious metals. My weekly report covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders.

This article was written by

Andrew Hecht profile picture
Weekly commodities commentary and calls, from a Wall Street veteran
Andy Hecht is a sought-after commodity and futures trader, an options expert and analyst. He is the #2 ranked author on Seeking Alpha in both the commodities and precious metals categories. He is also the author of the weekly Hecht Commodity Report on Marketplace - the most comprehensive, deep-dive commodities report available on Seeking Alpha.

Andy spent nearly 35 years on Wall Street, including two decades on the trading desk of Phillip Brothers, which became Salomon Brothers and ultimately part of Citigroup.

Over the past two decades, he has researched, structured and executed some of the largest trades ever made, involving massive quantities of precious metals and bulk commodities.

Andy understands the market in a way many traders can’t imagine. He’s booked vessels, armored cars, and trains to transport and store a broad range of commodities. And he’s worked directly with The United Nations and the legendary trading group Phibro.

Today, Andy remains in close contact with sources around the world and his network of traders.

“I have a vast Rolodex of information in my head… so many bull and bear markets. When something happens, I don’t have to think. I just react. History does tend to repeat itself over and over.”

His friends and mentors include highly regarded energy and precious metals traders, supply line specialists and international shipping companies that give him vast insight into the market.

Andy’s writing and analysis are on many market-based websites including CQG. Andy lectures at colleges and Universities. He also contributes to Traders Magazine. He consults for companies involved in producing and consuming commodities. Andy’s first book How to Make Money with Commodities, published by McGraw-Hill was released in 2013 and has received excellent reviews. Andy held a Series 3 and Series 30 license from the National Futures Association and a collaborator and strategist with hedge funds. Andy is the commodity expert for the website about.com and blogs on his own site dynamiccommodities.com. He is a frequent contributor on Stock News- https://stocknews.com/authors/?author=andrew-hecht

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

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