CORN
Another new low for the move overnight in July corn and analysts think it still looks like it is headed to the $6.02 1/2 support level. Yesterday, the December contract held at the March low and made a good bounce even with the active bear spreading. The December contract was supported overnight as a result of the planting progress number lower than expected at 17 percent. Analysts plan on a two sided trade today with more bear spreading early in the session. Analysts will be watching the $6.02 level in the July contract today.
WHEAT
Still not alot of bullish news to work with in regard to the wheat. French Milling wheat is higher this morning, which has the US wheat the cheapest in the world. Export sales have been ok, but not enought to keep stocks levels down. Winter wheat ratings improved to 64%Good to Excellent, which is an indication that the crop is getting bigger. 19 percent of Kansas is reported headed compared with none on average, which makes a late freeze as the best chance for a rally.
SOYBEANS
Soybeans traded under pressure overnight and the July contract is testing the support at the bottom of the range. There has been good buying interest from China and "unknown destinations" which will keep a bid under the market. Trend line support in the July contract is at the $14.04 area today, which is a potential downside target the next few sessions according to analysts.
LIVE CATTLE
Live Cattle futures posted sharp to moderate gains on Tuesday, led higher by the April contract and anticipated cash strength. Friday's On Feed Report is expected to show a 7-8 percent reduction in placements according to early estimates which could lend strength to deferred live futures. Beef prices remain higher, with choice and select now up nearly 5.00 for the week. Overnight trade was modestly higher, with outside market factors working against the market.
FEEDER CATTLE
Feeder Cattle futures have now rallied nearly 6.00 in the last five trading days. Tuesday's triple digit gains were supported by lower corn and higher fat prices. Cash trade is trending higher in the country according to reports with index levels officially on the rise. Analysts expect further strength heading into Friday's Monthly Cattle on Feed Report.
CRUDE OIL
June crude oil prices were under modest pressure during the early morning hours, seemingly in sympathy with plunging Brent crude oil and private industry data that showed a larger than expected US inventory build. The outside market tone was also under pressure, with weakness in European and US equities and gains in the US dollar. Some traders indicated that the shift in flows in the Seaway Pipeline continued to weigh on Brent crude oil and has fostered active liquidation out of the long Brent vs. WTI crude oil spread. Expectations for this morning's EIA report are for a build in the range of 1.0 million barrels, which compares to the five-year average draw of 400,000.
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.
