Grains and Oilseeds: July corn closed at $7.56 ½ per bushel, up 27 1/4c erasing almost all of Thursdays heavy losses. Renewed concerns over poor weather prompted the heavy shortcovering and new buying. We look for continued buying early this week tied to concerns that saturated fields could hamper plantings. July wheat closed at $8.01 ¼ per bushel, up 23 3/4c also tied to weather concerns. We prefer the long side but only with stop protection. July soybeans closed at $13.94 per bushel, up 40 1/2c for basically the same reasons as corn and wheat and with buying spread across the board and continued weakness in the U.S. dollar, demand for U.S. agricultural products could continue to benefit. Do not short "anything that grows" for the time being. July rough rice, our previously recommended buy, closed up the 50c limit on Friday but we have moved to the sidelines so offer no recommendation.
Coffee, Cocoa and Sugar: July coffee closed at $2.9875 per pound, down 1.2c. July cocoa closed at $3340 per tonne, unchanged and July sugar closed at $22.2c per pound, down 5 ticks. London markets, which to some extent affect global pricing, were closed for the Royal Wedding, and the Easter Monday holiday prompting thin trading and wide price swings. We prefer the sidelines for this group
Cotton: July cotton closed at $1.5802 up 6c on heavy trading on short covering after recent heavy selling in front of the weekend and tied to the weak dollar. We continue to prefer the short side of cotton. Add to put positions on any further price gains.
John L. Caiazzo
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.