Oliver Sloup, VP & Co-Founder, Blue Line Futures**** AUTO-TRANSCRIBED ****
Oliver Sloup of Blue Line Futures, coming to us from the sunny climes of Chicago. Thanks for being on the show. You guys have had some great weather as of late.
It’s a beautiful spring day, midday sixties. I might go go trying to hit a swimming pool if there’s any still out there you.
Go and get out the golf clubs.
Yeah. There you go.
All right, well, what’s happening today? We’ve had a big week, too. I mean, what are your thoughts here as we go into the last day tomorrow?
Yeah, a huge, huge week. And this morning it didn’t look like there were really going to be any silver linings in the grain markets. We saw a lot of the the agricultural markets and the outside markets kind of tumble this morning after a string of economic data. But I would say the silver lining here today is that corn market, as you had mentioned in the opening segment, we were $0.05 lower early and this morning now about $0.05 higher.
If you were to told me that commerce traded $0.05 higher with soybeans down 20 and crude oil down four bucks, I probably would have thought you’re a little bit crazy. So silver lining is corn. Nice to see us dip in the low end of the recent range. I wouldn’t be surprised to see this market continue to consolidate into next week’s option expiration for the December options.
Looking at the open interest, it looks like 480 could potentially be a little bit of a magnet. So I wouldn’t be surprised to see us just chop around on both sides of that in the next week’s option expiration.
Yeah, you’re right. I mean, boy, it’s a big a big move lower in crude oil. Maybe they’ll start to refill that strategic petroleum reserve, but also, you know, we got about almost 60 days, not quite right. We had this report about a week ago today. So let’s call it 55, 53 days left until we have the next big report.
We’re going to have a throwaway one in the summer. But as far as Swansea goes, we’ve got one coming in January. That’s a long time to wait. I mean, are we going to have to try to feed the bull every day there or is that going to get a little bit tiresome?
Well, it’s that time of year where there’s really not a whole lot of new news that comes across the wire for, you know, markets here in the U.S. So a lot of the attention really shifts toward South America. And I think that’s really what’s been driving the soybean market here as of late is the weather concerns down in Brazil.
Now, we do have a big retracement today, but if you zoom out, all we really did was retrace the breakout point from the start of the week. So we’re basically just a little bit above unchanged for the week. So not a whole lot of technical damage. I wouldn’t be surprised to see this market continue to consolidate between 1350 and $14.
And then if we do get better weather forecast going forward in South America, potentially we break to the low end of that and below. If weather continues to be a concern, potentially we add additional premium out above 14 bucks. But until we get a little bit more clarity on what they’re able to produce down there, I think we trade in about a 50 cent range here in the near future.
I’m on. We’ll know what happens on Sunday night if it’s sharply higher. They got their dry and they didn’t get the rain or lower They got the rain. All right. Stay right there. We’re going to go away. We’re going to pay some bills. I want to go back to talk more
Got about 45 seconds for you, Mr. Slope. Follow a slope. Bring him back in. What do you think about these meat markets?
Well, we had a nice rally in the first half of the week. They really just took us back to the breakdown point from last Thursday and we weren’t able to get out above that. We’re looking at the chart marks a lower high and that continues to be a big caution flag that we’re marking a trend of lower highs and now potentially on the verge of making lower lows.
And I think some of today’s weakness probably comes on the back of some of that economic data that suggests that the economy may be slowing and I think that’s reflective of the crude oil market as well. But on top of that, I think he probably got quite a bit of positioning ahead of tomorrow’s cattle on feed reform. We know that last month was a big bearish surprise and I think there are certainly some concerns that we could see another bearish surprise here tomorrow afternoon.
All right. They’re all running for the door before it happens. Thanks very much for being on the show here this afternoon. That’s Oliver. So Blue and Futures. He’s in Chicago. We’ll bring it back here to Asheville so I can hand back over two lovely shoes in.
One more time. Kelechi Close, of course, coming up at the top of the hour. Looking forward to it. Well, scammers, they take advantage of the holiday season to give
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