Grains and Oilseeds: July corn closed at $6.53 ¼ per bushel, up 11 3/4c on shortcovering and reported tight supplies. We could see further price gains but use stop protection for these wide ranging commodities. July wheat closed at $6.82 ¾ per bushel, down 5c tied to adequate global supplies. Stay out for now. July soybeans closed at $14.48 ¾ per bushel, up 21 1/4c also tied to tight supplies as with corn. We could see further shortcovering but once again, the wide price swings require stop protection.
Meats: June cattle closed at $1.1955 per pound down 35 points after the USDA monthly cattle on feed report was released and considered neutral. We would hold call position but not add for now until supply/demand factors improve. June hogs closed at 92.125 per pound, down 75 points on concern that pig virus could reduce demand by processors. Speculative selling along with fund long liquidation have pressured prices. We prefer the sidelines.
Coffee, Cocoa and Sugar: July coffee closed at $1.3705 per pound, down 2.8c on profittaking and an increase in stockpiles at London warehouses. Recent price range from the April lows around $1.35 to the May highs around $1.48 make coffee too risky to trade for retail clients. Stay out for now. July cocoa closed at $2.308 per tonne, up $14 on better than average volume. Cocoa may be ready for a price breakout but we prefer the sidelines. We need fresh fundamentals to make a trading determination. July sugar closed at 16.89c per pound, up 6 ticks on light shortcovering after recent heavy price losses. Reports that Brazil, the world’s largest sugar producer and exporter, is forecasting a record cane harvest and should continue to weigh on prices. Stay out.
Cotton: July cotton closed at 86.37c per pound, up 34 points on light shortcovering. The USDA report on Monday had indicated the U.S. cotton crop was 23% planted against 17% for the prior week. We prefer the sidelines for now.