Traders are looking at improving weather forecasts in the U.S. and France, contributing to expected better planting progress next week. Corn is down 13 cents. Soybeans are down 17 to 22 cents. CBOT wheat is down 30 cents. KC wheat is down 37 cents, and spring wheat is down 30 cents.
Livestock futures are quietly higher this morning. Feeder cattle are up 60 cents while live cattle are up 17 cents. Lean hogs are 80 cents better in the June contract.
In the outside markets this morning, the U.S. dollar is up 0.40 at 102.27. The low hit yesterday (very close to the 40-day average) in the U.S. dollar is the lowest level we have traded to in a month. Crude oil is up nearly 90 cents this morning at $110.67.
The stock market volatility over the past two months has likely impacted the money flow in and out of commodities. The charts are trying to form a bottom, but the first real test will be closing over the 20-day average. The S&P 500 futures have not been able to close over this line since April 7.
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About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.
Editor’s Note: The risk of loss in trading futures and/or options is substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance – whether actual or indicated by simulated historical tests of strategies – is not indicative of future results. Trading advice reflects good-faith judgment at a specific time and is subject to change without notice. There is no guarantee the advice given will result in profitable trades.
