CBOT Jun 7
Last changes
SMN 407.8 +3.9
SMQ 401.1 uch
SMU 39 7.1 +2.7
SMV 394 +3.5
SMZ 393 +4.3
SMF7 388.3 +5.5
SMH7 367.6 +5.4
SN 1141.25 +3
SQ 1138.25 +4.75
SU 1126.5 +8.5
SX 1116.75 +11
SF7 1113.75 +12
SH7 1087.5 +14
BON 32.29 -.22
BOQ 32.42 -.21
BOU 32.56 -.2
CN 427.75 +.5
CU 430.5 +1.5
CZ 433.25 +3.25
WN 509 +1.5
WU 519.25 +1.5
WZ 538 +2.5
The markets opened on a mixed note but beans and meal entered into a round of profit-taking once again by the funds, willing to book something in front of the USDA report. But the feature of the day was in sharply lower soyoil futures. In the big picture, most of today's volume was made up of rolling activity from July contracts forward, with light profit-taking.
SOY
The major features of the morning was the steep sell-off in soyoil futures, which traded up to a morning high at 3278 only to fall below 3215 (minor support levels) July which triggered sell stops. There was no one specific story for the downturn except that more funds may be liquidating long futures and a sharply lower palm oil market spilled over into today's session. Liquidating July meal futures also pressured the market with values trading up to 415.50 but then quickly taking out key support at 408.00, which took values lower from higher. Inverses were sharply lower with July / Dec meal falling to 14.60, down from an opening high at 24.50. July /Nov beans fell to 24 1/4 from a high at 37 1/2. Weakness in the July meal contract was a feature as well, as total open interest still remains fairly high for this market with the Goldman roll starting today. July /Dec soyoil spreads were trading from a 66-70 pt carry.
GRAINS
Wheat prices started the day lower but shortcovering activity quickly ran prices upward as July contracts hold the $5.00 level in early trade. Like the soyoil market where funds are selling, funds were covering in some of their short positions in front of Friday's report. Buy wheat/sell corn spread trade was also noted with the Jul spread trading up to 87c after a low of 76 ½ was printed for the day. July corn backed away from a new high at $4.28 with planting conditions up 3%. Corn spreads widened with Dec/July trading out to 5c from 2 1/2c carry.
AT 12:00 THE MARKETS ARE MIXED:
HI LO
July beans: dn 1 11.48 3/4 11.29
July meal: dn 4.30 415.50 402.60
July soyoil: dn 52 3278 3185
July corn: dn 2 4.28 4.22 1/2
July wheat: up 3/4 5.13 1/2 5.00 3/4
July canola: dn 2.20 518.70 513.20
Fund recap
sold 3000 wheat
sold 4000 corn (from 5000 earlier)
sold 7000 beans (from 5000 earlier)
sold 6000 meal (from 3000 earlier)
sold 4000 soyoil
OUTSIDE MARKETS
The Dow opened 26 pts higher but traded up as much as 75 pts higher during the session.
CLOSING COMMENTS
The market has temporarily lost its upward momentum and entering into a consolidation phase. This is not the same as a downmove. For that to happen, we have to close under 10.95 -11.00 in the July bn contract with funds exiting about 1/3 of their position Very little has changed in the corn market today, which continues to see support on breaks from commercials and funds wanting to purchase something. Corn futures are still far away from record length, so seems like funds are more or less comfy with prices where they are right now. Moral of the story is - continue to take advantage of price pullbacks until the funds turn loose of some of their holdings in beans, meal, and corn.
No comments:
Post a Comment