CBOT Jun 8
Last changes
SMN 417.1 +9.3
SMQ 410.4 +9.3
SMU 407.2 +10.1
SMV 404.6 +10.6
SMZ 403.8 +10.8
SMF7 398.6 +10.3
SMH7 372.8 +5.2
SN 1177.75 +36.5
SQ 1173 +34.75
SU 1159.25 +32.75
SX 1150.25 +33.5
SF7 1145 +31.25
SH7 1108.25 +20.75
BON 32.89 +.6
BOQ 33.02 +.6
BOU 33.15 +.59
CN 431.25 +3.5
CU 434.75 +4.25
CZ 437 +3.75
WN 519.5 +10.5
WU 530.5 +11.25
WZ 548.25 +10.25
Futures opened higher with corn and beans setting new highs again for the move upward along with Dec meal. Wheat futures picked up the higher trajectory following neighboring markets. Turnover was heavy as prices moved into new trading range highs with all the hallmarks of a bull market at work. The hotter and warmer forecast was one of the primary reasons attributed to this latest leg upward. But continuous business announcements and a continuing weaker U.S. dollar were side support points.
SOY
July and November beans opened at the higher end of expectations and quickly posted new contract highs on good fund buying activity. Dec meal sprinted to a new contract high at 409.00 with July meal eventually trading up to 424.00. Soyoil futures were also higher but not at the upper end of trading ranges, which pushed oilshare down again to .2820% for July. But July soyoil values did post a bid after prices pushed thorough minor resistance at 3280, which sponsored new buying taking values back over the 33c level. Dec crush was weaker trading from 1.09c/bu-1.10c/bu in the early going. Bean and meal inverses seemed to find more strength with July /Nov beans trading from a high at 32c with a low of 24 3/4. Meal spreads were also firmer up $4.00 for July /Dec which traded back up to 19.20. Nov beans traded to new contract highs at 11.59 ¼ as traders are concerned about a growing hiccup.
GRAINS
Grains were higher today but for a change it was wheat that put on an impressive performance on fund buying activity. July wheat posted a new high for the move upward at 5.24 as more shorts elected to get out of positions. Corn spreads remain well supported with Sep/Dec at a 1 3/4c carry as more traditional as well as non-traditional buyers step in to own corn. Dec corn futures traded to new contract highs at 4.44 while July values jumped to new trading range highs at 4.39 1/4c.
AT 12:00 THE MARKETS ARE SHARPLY HIGHER
HI LO
July beans: up 43 11.89 1/4 11.38 *new ctr high
July meal: up 13.70 424.00 407.10
July soyoil: up .74 3319 3219
July corn: up 7 4.39 1/4 4.26 1/2
July wheat: up 13 5.24 5.06
July canola: up 3.50 526.50 516.00
fund recap
bot 4000 wheat
bot 10,000 corn
bot 12,000 beans
bot 5000 meal
bot 2000 soyoil
OUTSIDE MARKETS
The Dow opened 12 pts higher but continued to tack on gains. The new highs in crude oil are supportive for corn, while the weaker US dollar is making the U.S. still more competitive.
CLOSING COMMENTS
Still surprising strength as prices head higher and higher. We will see if the Friday WASDE at 11:00 Chicago time can confirm what this market price action is doing, because if carry-outs are higher than expected and temperatures begin to turn favorable (and ratings go up) we could be in store for a larger correction. Funds are buying but be careful up here...... beans are once again getting very overbought at 73%, a level that has sponsored a larger break. And if we get the carry-out expected it's probably priced in. That makes the odds for a bull market reaction harder to come by unless we get something entirely bullish out of left field.
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