Soybean prices have moved from the red to black this morning. The weekly Export Sales report did not have any major surprises, but traders like the sales of old crop soybeans. July soybeans are up 16 cents while November is up 11 cents.
Corn and wheat futures remain in the red. July corn is down 12 while December corn is down 9 cents. Wheat prices are off the overnight lows by 15 cents. The July CBOT contract came within ½ cent of the low from yesterday and quickly rebounded. CBOT is currently down 15, KC is down 11 and Spring wheat is down 4. If the wheat bulls can get above the high hit yesterday, the daily charts would look much better heading into Friday.
Feeder cattle contracts are down 25 cents this morning while live cattle are trading down 20 to 35 cents. Lean hogs are off to a weaker start today as well with June hogs down 60 cents and August down 95 cents.
Crude oil found new buyers today. The July contract is up $2.63 at $112.96. The May 17 high at $113.20 is the target for the bulls. A strong move over that high would likely bring another wave of buying. The Stock market is higher today by over 1%. The S&P 500 futures are right against the 20-day average. April 7 was the last time we saw a close over the 20-day.
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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.