CORN
Despite all the talk of early planting, corn planting progress was estimated at 3% complete compared with 2% last year. that seemed to be a little disappointing and led to some bear spreading when the overnight trade got started, but by the end of the session the bull spreaders were back. The May contract continues to separate from the July and the old crop is distancing itself from the new crop. Look for the May and July contracts to reach the $6.75 level soon.
WHEAT
Wheat is still the weak link. Even Minneapolis wheat was lower overnight. There is only so much support the corn can provide the wheat market. At some point we have to see better demand. The rain in the HRW Belt doesn't help matters either. Wheat supplies are already abundant and a good crop would make supplies.
SOYBEANS
The soybeans had a setback overnight, but it still looks temporary. The market keeps getting fed bullish news and trders are beginning to anticipate bullish numbers from USDA in both the April and May Supply and Demand Reports. Buy breaks and look for the July contract to reach $14.70 soon.
LIVE CATTLE
Live Cattle futures traded both sides of unchanged on Monday, finishing near session highs and well over a Dollar off of session lows. The stronger close came on the back of new money, as open interest rose 2,320 contracts on the day. Show lists were smaller overall, with our list dropping 18% from a week ago and only carrying 3% over from last week's list. Overnight activity has been mixed, with the front three months showing the most strength. Outside market influences are slightly negative to start the day.
FEEDER CATTLE
Feeder Cattle futures closed mixed to mostly higher on Monday and as much as 2.00 off of session lows. Strength in old crop corn contracts kept a lid on any additional rally effort for the day. Overnight activity has been mostly firmer, in the wake of Monday's recovery. Open interest fell more than 3,100 contracts for the day, suggesting short covering was leading the rally effort. The board remains sharply discounted to the current cash index, with April nearly 4.00 lower.
There is substantial risk of loss to futures and options trading. Past performance is not indicative of future results.
By Donna Hughes
Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchange’s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the AllAgNews.com Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.
Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. O’Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.
