COMMENTARY 5-18-12
CORN
OLD - Up 10 NEW - Up 9
December corn took over as the leader for the first time
in a long time as a less than perfect weather outlook and
some second-guessing on using a record yield helped to
support. A continued firm cash market and some continued
uncertainty over a generally warmer and drier outlook for
portions of the Midwest helped to support. In addition,
a more positive tilt to outside market forces with a jump in
wheat and gold prices and a firm tone to the US equity
markets helped to support.
BEANS
OLD - Down 33 NEW - Down 18
Funds were noted as unwinding long soybean short
wheat and short corn spreads, and this helped support the
other grains and pressure soybeans. Further weakness
in China and ideas that the China economy may suffer
short-term with so much uncertainty coming out of Europe
has helped to spark some long liquidation selling
recently, and news that China plans to offer 600,000
tonnes of soybeans from state reserves next week which
could help to slow the short-term import demand helped to
limit the advance.
WHEAT
Up 37
Weather concerns for
western plains in the US and portions of
Ukraine and Russia for next week helped
spark FUND BUYING and short-covering has
emerged. Outside market forces were somewhat
positive with a little more stability in the
US equity market and a strong gain in gold
and corn helping to provide some support.
Commentary from CME Groups www.cmegroup.com, and or other sources.
The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.