Headlines:
- Trading for Grain, Oilseed & MGEX Products will be closed on Monday May 30th in observance of Memorial Day
- Dairy commodity prices may not recover until 2017
Dairy commodity prices may well not recovery until “some time” next year, US officials said, warning that New Zealand milk values may say low until 2018, and that “large numbers” of European farmers may quit. Many observers believe that prices of whole milk powder will “be the quickest to recover” from the downturn which for nearly two years has seen prices remain close to the lowest in a decade, and at less than half highs reached in early 2013.
Summary:
Bayer sweetened offer to Monsanto was not quite sweet enough. Monsanto shares continue to rise after Hugh Grant, its Chairman and CEO rejected Bayer’s 62 Billion dollar offer. The $62B offer amounted to a 37% premium on the company’s market capitalization. According to Hugh Grant the offer “significantly undervalues our company”. It should be noted that Monsanto is “open to continued and constructive conversations” over whether a deal in the best interests of its shareholders could be sealed.”
Soybean futures rallied for the 1st 90 minutes of the regular trading session but then sold off and was not able to finish the day in positive territory. The July contract lost 4.25 cents while the November contract sank 8 cents. Corn futures broke to new highs touching its highest level since April 21. Like Beans it also topped at about 11am Eastern failing to recover the balance of the day. Both July and December Corn surrendered 1.25 cents on the day. In our weekly newsletter Wheat futures dipped down to one of our support levels during the pre-market session that happened to coincide with the exact low of the day today at 457.75. July Wheat bounced up from there at the open but like Corn and Beans topped early in the day.
All three markets selling off at the same time of the day is symptomatic of a fund liquidating a basket of its positions. The big question is whether or not the seller is done or if they will return over the next few days. It stands to reason that some profit taking and laying off of risk ahead of the Memorial holiday weekend is in play. Crude Oil is still strong rallying about a dollar today. Historically it tends to rise the week leading into Memorial weekend so it would continue to rise for the balance of the week.
