Market was trading higher electronically and worked its way to a new nearby high after the opening. There was not much to trade on over the weekend as grains were slightly lower to unchanged and there was no specific weather news. However, the market was shooting for buy signals and did set off some friendly technical buy stops.
There was some profit taking on the highs and the market did cool off back under 64.00. Volume was average again with only 14,000 futures and 12,000 in options.
Dow Jones was higher today as the equity market recovered slightly after a big down slide last week. Grains closed slightly higher in corn and soybeans, but wheat was down over 2% after a nice rally last week.
We continue to look for demand and monitor the crop progress to determine where the nearby range will trade, but we have broken out of the 150 pt narrow price band of last week and will wait to see where the selling pressure is uncovered.
Technically the market did close back above the 9-day moving average and is starting to look more friendly going forward. There are some weather concerns growing in South Texas and possibly China has some flooding issues as well.
There are also rumors of big export sales and shipments coming up on Thursday. In the meantime, we need to see what the spec position is tomorrow as it may have drifted down slightly, but is probably still above 30%.
marketing@alchempro.com
