Grains and Oilseeds: July corn closed at $6.41 ¼, up 7 3/4c per bushel on speculation that rain in the U.S. growing areas as well as Canadian snows will delay plantings. July wheat closed at $7.19 ½ per bushel, up 16 1/4c tied to cold weather threatening the winter crop in the southern Great Plains of the U.S. July soybeans closed at $13.79 ¼ per bushel, up 11c also tied to the U.S. rains and Canadian snows delaying plantings. We like soybeans once again from current level but use stop protection.
Meats: June cattle closed at $1.2075 per pound, up 10 points on light shortcovering after recent weakness. Reduced demand tied to economic concerns have pressured prices for some time. We could see some corrective buying but use stops. June hogs closed at 89.90c per pound up 45 points also on light shortcovering after recent weakness tied to lowered U.S. demand for pork. Recent highs around 92c failed to hold and long liquidation brought prices back down. We prefer the sidelines.
Coffee, Cocoa and Sugar: May coffee closed at $1.3490, down 1.9c on continued selling pressure tied to global supplies. We prefer the sidelines in coffee. May cocoa closed at $2,261 per tonne, up 33 points on light shortcovering in front of the weekend. We continue to prefer the sidelines in cocoa. Weak global economies reduce demand for cocoa products. May sugar closed at 18.03c per pound up 22 points tied to concerns that rains will delay the sugar cane harvest in Brazil. We could see further price gains in sugar and would lightly buy but with stop protection.
Cotton: May cotton closed at 85.58 per pound, up 1.25c on shortcovering after recent selling had been tied to signs of increased global supplies. Buying from last October 71c price level tied to supply concerns may have been overdone and the correction was expected. We had been bullish towards cotton and are now on the sidelines.