Market opened higher after trading higher overnight based on the momentum from yesterday's rally. However, the grains were not following as the market pushed over 100 pts higher early after the outcry began and we set a new 9-week high at 66.25 c/lb. This lead to more bearish options from the trade taking profits and heavy scale up selling.
Volume was very good at almost 40,000 futures and 40,000 options as the market gave back the early gains from the day but found support at the lows from Monday at 63.50. The market bounced higher but settled below 64.00 cents which was off over 200 pts from the highs set in the morning.
We should see another weak export sales report tomorrow and this along with weaker grain prices may allow the market to break the support at 63.50 and 63.30. Wheat was down almost 30 cents today which is the limit, while corn and beans closed mixed to unchanged. The stock market managed to hold up a positive .5% gain today, but is getting close to record highs and maybe looking for a correction as well.
With strong gains in metals and energy, the Commodity index set new record highs again today. Cert stocks continue to rise as we approach FND for V'07 futures and Z'07 becomes the new front month to sell cotton.
The majority of our sales were done against V'07 at 56 and the high today was 10 cents higher than those levels. The market is giving us full carry so there is no reason to see a break in the basis and will needto see NY much lower to generate the business that was done back in August.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
