This morning's spec hedge report revealed a spec position that is now 6.6% net long compared to 5.1% last week. For the week specs increased long positions some 4,141 lots, which also resulted in a large increase in open interest. The spec long is the equivalent of 1.5 million bales.
May continued it's new found weakness, and although it was only a low range day, there appears to have been a lot of rejection at the 54.70 level last week. This level represents a triple top established over the course of the last month, and should continue to exert weakness in the near term.
Moving averages are turning lower again, having threatened to converge last week. The 50 day SMA looks to be resistance from here, as will the 9 day EMA at 53.45. Momentum is neutral, with the RSI at 43.33.
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