Technically, the market is looking like it may have set a temporary top. We are still in over bought territory and the spec position tomorrow will be a big indicator if we can make another test of the 60 c/lb level in Z'07. N/Z rolling is the main feature through the end of the week and may continue to see N'07 finish out weak as the spread widens out.
FND is Monday, June 25th, and may see July'07 work its way down to the top of the gap set last week. The weather and crop progress are improving and combined with July expiration and the large spec long position, we may see additional profit taking.
marketing@alchempro.com
