Headlines:
- NOPA Crush will be released Monday, May 16th at Noon EST
- The next USDA crop production and S/D report is scheduled for May 10th
- Weekly Export Sales will be released tomorrow at 8:30AM EST
- Unemployment statistics will be released Friday, May 6th at 8:30AM EST
Summary:
Equity markets continue to struggle after topping the third week of April. Weak economic data has been muting gains in both the domestic and global market space. China has been applying its form of quantitative easing with its central bank increasing credit limits to the banks that it oversees. Taking page out of the US economy China is fully committed to trying to borrow its way out of financial collapse.
Reports from the Wheat Quality Council tour continue to validate estimates that have been projecting a large Wheat crop. Wheat futures were up in early trading but the advance was not sustained with prices closing in the bottom third of the day’s trading range surrendering pretty much all of the positive progress that it had intraday. The July Wheat contract ended at 471.25 up 0.50 cents.
Soybean futures continue to lead the grain markets. The rise in Soymeal prices made for push higher today with July Bean finishing up 6 cents and November Beans plus 6.50 cents. The Soybean market has upside potential this week but cycles are pointing to a near term pause or ceiling sometime this week. If resistance is able to hold prices in check this week a sideways to down pattern should follow for about a week or two.
As market participants try to weigh out the Brazilian production issues displacement of that Corn with feed Wheat is immerging as viable alternative. That would serve to potentially soften the expected decline in Wheat price while at the same time the cheaper alternative to Corn would add pressure to Corn prices. Domestic production is still estimated at record levels. Today July Corn lost 3.50 cents and December Corn posted a loss of 3 cents.
Crude Oil traded below yesterday’s low but is poised to close fairly flat on the day. Time and price resistance came into play very nicely on Friday and we are looking for the high to hold for at least a week.
