CBOT Jun 2
Last changes
SMN 418.3 +19.2
SMQ 399.4 +11.8
SMU 388.8 +7.7
SMV 381.4 +4.7
SMZ 379.3 +3.8
SMF7 372.6 +3.7
SMH7 354.7 +2.2
SN 1144.25 +44.5
SQ 1130.75 +35.25
SU 1102.5 +23.5
SX 1081.75 +13.25
SF7 1077.75 +13.25
SH7 1046.75 +7
BON 32.26 +.07
BOQ 32.37 +.07
BOU 32.48 +.07
CN 415.25 +1.5
CU 415.76 +.75
CZ 416.75 +.5
WN 485.5 +11.75
WU 496.25 +11.25
WZ 514 +11
The soybean market opened strong and quickly placed new highs for the move upward. July corn posted a new high for the move upward as well while wheat values were only modestly higher. Bean and meal inverses jumped to new highs as more talk of demand coming to the US emerged.
SOY
July beans continued to tack on solid gains in a mostly technical move when price action extended right through the 11.00 benchmark. Charts are very bullish now with today's price action above and beyond the last areas of congestion. November bean highs are following higher at about half the pace as more upward price action mirrors about the same situation as that going on in the July bean chart. While upper resistance lines in July beans cross at 10.46, the same for Nov beans today is 11.05 should we get there. More newswire chit-chat about possible switches by China to the US from SA are sending prices higher, as new fund buying is triggered by positive chart technical signals. Canola prices were higher following beans and a drier and warmer extended forecast for next week. Product trade is positive as well, with July meal jumping back towards previous contract highs set last week, as deferreds lag the pace but also trade at new chart highs. Soyoil contracts by contrast are not participating in the rally today, up only 25 pts by contrast. The July /Nov bean inverse raced to new highs at 59 1/2c on more bullspreading activity and flat price strength for the nearby contract. July /Dec meal inverted to a new high at $38.20.
GRAINS
Corn prices traded to new highs today for the move upward as more speculative buying took place. The commitment-of-trader's report is probably going to show a lengthened spec position given this week's technical action. In terms of reports, the EIA numbers had ethanol production up 1.5%, and ethanol futures are higher. Wheat futures still continue to be the most abandoned trade in terms of speculative plays, with a fairly consistent short position futures /options combined. Thus wheat rallies are typically short-covering in nature, which was at work today as July contracts triggered buy-stops thorough $4.81 triple tops.
AT 12:00 THE MARKETS ARE HIGHER ACROSS THE BOARD:
HI LO
July beans: up 37 11.44 1/2 11.00 3/4 *new ctr high
July meal: up 16.60 418.80 399.50
July soyoil: up 29 3263 3214
July corn: up 2 4.19 1/2 4.12 1/2
July wheat: up 9 4.87 4.72 3/4
July canola: up 1.80 522.00 515.40
Fund recap
bot 4000 wheat
bot 9000 corn
bot 15,000 beans
bot 6000 meal
OUTSIDE MARKETS
The Dow opened down 37 pts. but trimmed losses by the midday hour. The US dollar was firmer with crude oil close to $50/barrel.
CLOSING COMMENTS
The strength of these markets for beans and meal continues. Buyers who are not covered are watching closely for pullbacks, but strong markets do not give buyers much of a chance to get something on the books. Look for prices to probably head into the close mid-range or higher with the best possibility of profit-taking for a lower price tomorrow as we go into a weekend that looks good for planting and for growing the crops.
No comments:
Post a Comment