This morning's opening call was for around 20 lower, which eventuated into an accurate call. Upon opening both the March and the May contracts attempted to work a little higher, however there was a noticeable trace of fund selling around early, and with this in mind the locals soon began to lean on the market, knowing that beneath 54 cents there would be a large swathe of sell stops resting for the funds.
With this in mind the market eased lower, though again the March / May and March / July spreads both narrowed, which is needless to say an unusual phenomenon. As March ticked under the 54.00 area it started picking up good downside momentum as sell stops increased.
Before long it had bled down to the 53.35 level whilst the May had cascaded to 54.00. Good support was immediately noted in the December contract out of the trade, whilst the March was soon supported back in the 53.40-53.50 area.
Talk is starting to increase about the new crossover to the electronic exchange, which ICE plans to roll out on the 19th of this month (rather over hastily we might add). Nonetheless this exchange will henceforth be open for 22 hours of the day.
So if the text of this report starts to take a spiral in quality, blame it on ICE!!! Estimated volume today was quite large at 25,000 lots. It was no new Wednesday here again today, but traders are anticipating a very scarce US export report tomorrow. This could well begin influencing the USDA come supply and demand estimates, due out this Friday.
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