CBOT Mar 30
Last changes
SMK 271.9 -1.3
SMN 274.6 -1.2
SMQ 275.9 -1
SMU 277 -1
SMV 278 -0.8
SMZ 280 -0.8
SMF7 280.8 -0.6
SK 909 -7
SN 916.25 -6.5
SQ 918.5 -6.25
SU 919 -6
SX 923 -5.5
SF7 926.5 -5.25
BOK 33.79 -0.26
BON 34.01 -0.27
BOQ 34.10 -0.27
CK 367.00 -6
CN 371.50 -5.75
WK 464.00 -12.75
WN 471.50 -12.25
The markets opened as called with falling wheat prices the largest feature of the morning led by Kansas City. New rains across drier southern plains areas were said to be a catalyst for the break in wheat. US dollar weakness and a rally in the stock market helped to keep grains and soy values from breaking harder given the opening weakness in wheat prices.
Prices are mixed again this morning with most of the Ag commodities lower except for meal, (funds are still short here), which is higher versus soyoil futures as traders unwind that spread. Palm oil is also weaker which is leading to soyoil bull profit-taking to begin the morning. The trade this week remains all about evening up positions, which remain short for grains and slightly long for beans. Soyoil futures positions are now showing record length, which is providing weight to that market this morning. Bean direction seems more closely tied to what soyoil is doing lately so beans will open weaker but not before notching new highs for the move upward at $9.17. There was good reported US and Argentine farmer selling as beans set new highs for the upward trend.
The soy complex traded lower throughout even though meal prices started the day in higher trade. Prices could not stage a rally beyond key resistance in the May meal contract at 275.00 which sent prices quickly back to trading range lows around 272.00. Soyoil prices found more support on the corrective pullback from overall highs in the May contract at 3418, but for the day the price action is merely about standing still as meal setbacks to lower levels of trade. Soybeans were on the defensive having rallied to monthly highs at $9.17. November bean highs traded above the highs placed last December located at $9.26 with a trading range high at $9.29 1/2. Volume has slowed as prices have reached these highs with relative strength now into the lower part of overbought, still not high enough to warrant a larger corrective setback. That might be coming but doesn't feel like it's today.
CLOSING COMMENTS
Funds have shown the smallest inclination to hold onto short bean positions too long, while maintaining short wheat for a much longer period of time. Not too surprised then to see the wheat market head lower even while beans stay mostly afloat in the upper portion of trading ranges along with soyoil. Will review the March 31 Planting Intentions guesses expected in tomorrow's report first thing in the morning. But the market, having reached these highs from contract lows, is obviously considering all outcomes. Now we just have to see if we get numbers beyond the expected and if so, what the funds want to do with their largest position commitments which in this case belongs to wheat and corn (short) against soyoil (record long).
Brazil Party Abandons President 03/30 06:21
SAO PAULO (AP) -- Brazil's largest party abandoned President Dilma Rousseff's governing coalition Tuesday, making it tougher for her to survive mounting pressure in Congress for her impeachment.
The Brazilian Democratic Movement Party, known as the PMDB, said after a meeting that six Cabinet ministers belonging to the party as well as some 600 federal government employees who are members must step down. The announcement was made after more than 100 lawmakers approved the decision, according to the press office of Romero Juca, an influential senator.
The session ended with chants calling for the end of Rousseff's Worker's Party and for Vice President Michel Temer to become Brazil's president. Temer, who is the leader of the Democratic Movement, would assume the presidency if Rousseff was impeached for breaking fiscal laws.
The break increases the chance that Rousseff, whose popularity has plunged amid Brazil's worst recession in decades and corruption scandals, will be impeached in the coming months.
Brazilians have been staging wide protests demanding the president's impeachment and protesting the sprawling corruption scandal at state-run oil giant Petrobras that has been moving closer to Rousseff's inner circle. Rousseff, a former chairwoman of Petrobras' board, has not been implicated in the unfolding scandal at the oil company, which prosecutors say is the largest corruption scheme ever uncovered in Brazil.
The leak last week of spreadsheets listing payments to nearly 300 politicians representing dozens of parties further inflamed widespread disgust with Brazil's entire political class. The spreadsheets were seized in the Petrobras case from the home of a top executive at one of Brazil's biggest companies and list politicians and their code names alongside monetary figures. Authorities are still investigating whether the sums constituted illicit payouts or were legal campaign donations.
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