Sell off reveals stock market's fragile state

Grains and Oilseeds: May corn closed at $7.22 per bushel, up 25 1/2c on better than expected export sales and renewed concern over supplies and on shortcovering after the recent sharp selloff. The USDA confirmed strong demand for corn and weekly export sales exceeded expectations. We like corn but any new purchases should include stop protection. May wheat gained 28 3/4c per bushel to close at 48.11 ¼ also on strong export sales. May soybeans closed sharply higher as well at $13.78 ½. We prefer the sidelines in wheat and beans for now.

Coffee, Cocoa and Sugar: May coffee closed at $2.6795 per pound up 15 points. May cocoa gained 419 per tonne to close at $3658, and May sugar gained 11 points to close at 28.85c per pound. We did not follow those markets this week and cannot offer comment or suggestions other than to say that new highs have been achieved recently and a correction may be in order.

Cotton: May cotton reversed from three days of limit down losses to close limit up 700 points to $1.8423 per pound. Strong demand remains with global carry over estimates at a 15 year low. We would avoid any market that moves limits since there is no "exit door" at times.

John L. Caiazzo
Website: www.acuvest.com

E-mail: futures@acuvest.com

Information provided is from sources deemed to be reliable but not guaranteed. Futures and Options trading involve a high degree of risk and may not be suitable for everyone. John Caiazzo is a registered commodities broker with over 40 years experience in investments and opinions are his own and not of the Futures Commission Merchant to which he introduces his clients.

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About the Author
John L. Caiazzo

Website: www.acuvest.com

E-mail: futures@acuvest.com

Information provided is from sources deemed to be reliable but not guaranteed. Futures and Options trading involve a high degree of risk and may not be suitable for everyone. John Caiazzo is a registered commodities broker with over 40 years experience in investments and opinions are his own and not of the Futures Commission Merchant to which he introduces his clients.

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