Grains and Oilseeds: May corn closed at $7.17 ¾ per bushel, up 1 1/4c on improved export sales, and purchases by China. We could see higher prices for corn but at current levels in the middle of its recent range we prefer a “breakout” before entering this market. May wheat closed at $7.23 ½ per bushel, down 1 1/4c as rains in the U.S. plains may have improved crop development. We prefer the sidelines in wheat. May soybeans closed at $14.27 per bushel, down 8 1/2c on weak sales for both old and new crop beans. We are on the sidelines here as well.
Meats: April cattle closed at $1.2570, down 2.36c and we have lost interest for now. The continued pressure on prices has taken cattle to new intermediate lows. Stay out for now. April hogs closed at 79.625 per pound, down 1.25c and is also on our no interest list for now. We see no reason for prices to rally given the current fundamentals.
Coffee, Cocoa and Sugar: May coffee closed at $1.3740 per pound, down 2.5c and remains at recent lows. Stockpiles of beans are at the highest level since 2010 before the beginning of the harvest in Brazil. Stay out for now but any change in fundamentals could prompt shortcovering and new buying. May cocoa closed at $2,109 per tonne, down $21 on long liquidation and without fresh fundamentals from Ivory Coast, could remain at current levels. Stay out but look to buy on any changes in African growing areas or European and U.S. demand. May sugar closed at 18.81c per pound, down 3 ticks but with adequate global supplies, we see no reason to enter this market here. Stay out for now.
Cotton: May cotton closed at 92.57c per pound, up 1.71c on continued buying tied to strong export demand as reported in recent USDA data. Tight supplies for domestic and global cash markets also a factor. Cotton prices are up almost 14% since the beginning of the year and strong demand from China and concern over U.S. supplies could push prices further. We continue to favor the long side of cotton as we have of late and would add to positions but raise trailing stops.