CBOT Jun 6
Last changes
SMN 411.7 -2.6
SMQ 401.1 +3.4
SMU 394.4 +4.4
SMV 390.5 +5.8
SMZ 388.7 +6.2
SMF7 382.8 +6.7
SMH7 362.2 +5.4
SN 1138.25 +6.25
SQ 1133.5 +11.5
SU 1118 +16.75
SX 1105.75 +20.5
SF7 1101.75 +19.25
SH7 1073.5 +18
BON 32.51 +.25
BOQ 32.63 +.25
BOU 32.76 +.25
CN 427.25 +9
CU 429 +9.25
CZ 430 +10.25
WN 507.5 +10.25
WU 517.75 +11
WZ 535.5 +12.5
The markets opened as called with prices higher around the board. Corn and wheat continued to lead the march higher while soy complex values continued to congest with an initial round of profit-taking by the bulls.
At 10:00 export inspections were released as follows:
beans: 98,378 tons vs. 227,144 tons wk ago
wheat: 390,185 tons vs. 496,938 tons wk ago
corn: 1,067,513 stons vs. 786,507 tons wk ago
Inspections were neutral to low end for beans, but any price reaction was used as further position-evening by the funds.
SOY
Beans / meal opened at their highs but funds were busy selling the higher values as a round of profit-taking set in. Inverses were down sharply with Jul /Nov beans trading off 10 c to 36c inverse while July /Dec meal inverses lost $7.40 to trade down to 24 from a 36.70 high. But the major feature of the day was the November bean chart which traded to new contract highs at 11.18 1/2c. July meal prices continued to be a volatile trade staring the day higher but also trading both sides of even as funds roll or liquidate their length in this market. As of last Friday, July bean open interest stood at 335,677 contracts followed by Nov at 298,419 contracts. July meal open interest stands at 146,237 contracts and soyoil at 164,723. Dec crush backed away from contract highs at 1.23c/bu to trade to 1.12c/bu as meal was largely ignored today by the funds. Canola prices were higher but were largely following higher soybeans, with some rains in the western areas of Canada bringing relief to too dry areas. Soyoil futures remained in a very compact trade supported by palm, canola and crude.
GRAINS
Gains in corn and wheat were the major features as funds purchased a healthy amount of both at the open and throughout the session. That fund buying pushed both into trading range highs with July corn up to 4.27 1/2 and July wheat at 5.14 3/4. July corn open interest now stands at 567,702 contracts, with Dec having the next amount of open contracts at 370,264. July wheat / corn spreads moved to a high at 88c. Funds purchased wheat into commercial selling activity, making it an exchange of ownership today.
AT 12:00 THE MARKETS ARE MIXED:
HI LO
July beans: up 11 11.62 11.37
July meal; dn 2.70 425.90 410.50
July soyoil: up .24 3265 3234
July corn: up 5 4.27 1/2 4.19 1/4
July wheat: up 7 5.14 3/4 4.96
July canola: up 6.50 522.10 512.50
Fund recap
bot 3000 wheat
bot 5000 corn
bot 3000 beans
bot 1000 soyoil
OUTSIDE MARKETS
The Dow was up 34 pts gaining momentum into the expectations of the Janet Yellen speech about the economy and further interest rate direction. The Dow had been up over 100 pts but started to lose momentum as Yellen started to signal that the economy had softened.
CLOSING COMMENTS
On Monday's and Friday's we often trade fund positions. The futures / options combined positions nowlook like this:
Wheat: net short 72,000 (has not changed much)
Corn: net long 149,700 (length has grown, but record is 372,756)
Soyoil: net long 45,000 (no change)
Beans: net long 225,700 (the record net long here is 253,889)
Meal: net long 81,200 (the record net long is 101,618)
If the funds want to load up on corn, there is room to spare. In the meantime, the price action in soy definitely spoke to some consolidation trade. But with funds nearing record length in beans and meal would be careful if wanting to jump on the bull bandwagon and wait for a larger corrective pullback. Wheat, though it did trade through $5.00, might be a better sale with a tight stop in place.
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