CMEGroup Grain Futures Calls:
-May corn called 3 to 8 higher
-May soybeans called 1 to 3 higher.
-May wheat called 1 to 3 higher.
June US dollar is up 4 at 82.35. June crude is up $.17 at $82.61. June Dow futures are up 36.
-Concern is growing about Greek problems spreading into other weak EU countries. One rating agency cut both Greece and Portugal’s debt rating. Greek two year notes are trading at 21%. That is a large “risk premium”.
-The Federal Open Market Committee will end its two day meeting today. Look for a press release early in the afternoon.
-Yesterday afternoon the American Petroleum Institute estimated weekly crude oil inventories rose 5.3 million barrels. That is a good deal more than the 400,000 barrel increase the trade was expecting. The Energy Department gives their numbers later this morning.
-Yesterday the CFTC announced it will extend oversight of seven energy contracts traded on the IntercontinentalExchange.
-Today is the last day of clear skies for the Midwest. The forecast still suggests rains will come Thursday and Friday and a second system from Monday through Wednesday is scheduled.
Grain Market Influences:
Corn summary… Before the opening there was a fair amount of talk, none of which was too bullish for corn. First off, the December corn took out major support of 375 1/4 on the overnight trade which opened the door to lower new crop price movement.
Dow Jones newswire reports China bought 100,000 tonnes of US corn overnight.
South Korea seeks 110,000 tonnes of corn for September/October delivery.
Soybean summary… The dollar was +60 points as Greek debt bonds were downgraded; crude fell 180 in response to the dollar and talk of huge oil supplies. Funds sold 6,000 contracts of beans as the Goldman Sachs/Senate panel got underway.
Wheat summary… Wheat futures are thinly traded as we enter the waning end of month. It is estimated funds were even on the day and it was good to experience the higher close for wheat vs. corn (the other starch). Allendale was asked by a major wire service to provide a production estimate for Kansas leading up to the start of the winter wheat tour which takes place next week.
South Korea seeks 55,000 tonnes of feed wheat.
-Wholesale beef closes up $.10 for choice and up $.63 for select.
-Pork carcass cutout closes down $.88.
-Cash hogs are called steady.
June Lean Hogs are called 10 to 20 higher.
----Chart support 84.00 and resistance 87.80.
June Live Cattle futures are called 15 to 30 higher.
----Chart support 92.00 and resistance 96.00.
May Feeder Cattle futures are called 15 to 30 higher.
----Chart support 111.35 and resistance 115.00.
Livestock Market Influences:
China imposes additional tariffs on US poultry due to subsidies they say US chicken producers receive. You may remember they already slapped selected tariffs on US producers weeks ago.
Lean hogs summary… Nearby futures shrugged off yesterday’s price decline. Traders saw wholesale pork close higher yesterday and cash hog prices pushing for higher territory today. We reiterated our longer term supportive position yesterday.
Live cattle summary…June futures reached as much as $2.75 lower today. August was able to fall $2.55 at one point today. Though the day’s close was off those levels, the damage may have been made here. Cash cattle traded actively today at $98 and $98.50. That is down from $99 last week.
CMEGroup Grain Futures Calls: