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Global Commodities Newsletter Feb 2021

Market Outlook for US and South America Regions


After the February USDA report, soybean and wheat futures were rangebound. May soybeans traded between 13.50 and 14.00 and May Chicago wheat between 6.40 and 6.60. May corn had a wild ride from a high near 5.72 to a low near 5.23 and is now back near 5.50.

Lean Hogs

January 2021 was good for the producer and good for speculative traders, especially traders with spreads. April 2021 lean hogs on December 31 settled at $72.25/cwt and on January 29th closed the day at $76.65/cwt.

Live Cattle

With the December 2020 holiday beef demand over, boxed beef prices began the first week of January 2021 moving lower. Overfed big cattle in the Midwest and Northern U.S. were a problem in the last quarter of 2020 and continued to be a problem starting out in 2021.

Stock Index Futures

S&P 500, Dow and NASDAQ futures advanced to new record highs due to vaccine and fiscal stimulus optimism, along with better than expected quarterly earnings results. In addition, recent gains were linked to ideas that the Federal Reserve will remain accommodative for an extended period

US Dollar Index

The U.S dollar index appears to have found support near the 90.000 level. More recently the greenback has firmed, as some economic reports came in better than expected.


The euro currency made a near-term top in early January and has trended lower more recently. Economic news has been mixed.

Crude Oil

Crude oil futures extended gains with both WTI and Brent crude near 13-month highs amid weather-related supply disruptions and a larger-than-predicted decline in U.S. crude oil inventories.


Flight to quality longs in gold continue to be liquidated in light of a stabilizing U.S. dollar. Gold futures are seeing only limited support from increasing prospects of rising inflation levels.

Market Outlook for China and Asia Regions

The key Chinese and Asian event over the last 30 days has been China’s PPI record growth, although the CPI dropped temporally in January. Traders believe an increasing PPI will translate to higher inflation down the road. Australia kept its key interest rate unchanged, but surprised the market by expanding the QE size.

Click here for February 2021 Edition

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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