Grains and Oilseeds: Heavy long liquidation of grains by commodity funds was a main feature to Friday’s action. September corn closed at $6.57 per bushel as long liquidation tied to margin calls dominated the session. We continue to favor the long side of corn. September wheat closed at $7.05 ½, down 8 3/4c in line with other grains. Stay out for now. November soybeans closed at $13.09 ½, per bushel, down 8c but was able to hold support on a technical basis. We like soybeans from here but with stop protection. Weather in the mid-west continues to threaten growing areas. Do not be short "anything that grows" for now.
Cattle & Hog report: August cattle closed at $1.1350 per pound on Friday gaining another 7.75c as the "bull" remains the dominant "animal". Packer margins are strong and driving demand. We could see further price gains but it appears to be time to take some profits "off the table". Hold some longs. August lean hogs closed at 95.2c per pound, up 0.7c with the December contract gaining 0.875c per pound to close at 85.55c. the late Hogs and Pigs report late Friday was unavailable at this writing for this market. We will have to wait and see the results of that report early Monday before drawing any conclusions.
Coffee, Cocoa and Sugar: September coffee closed at $2.5190 per pound, up 1.4c on short covering. We remain uncommitted on this market at current "lofty" levels. New fundamentals are necessary for us to make any trading recommendations. September cocoa closed at $2974, per tonne, up $10 and remains rangebound. Stay out for now but the trend remains mildly bullish. October sugar closed at 25.85c per pound, down 15 points on profittaking. We have no opinion for now but prices seem to be stagnant at current levels.
Cotton: October cotton closed at $1.2692 per pound on Friday on shortcovering in front of the weekend. We have not monitored price action this week but the trend remains bearish.
John L. Caiazzo