The market was very quiet today as we traded in a 60 pt range all day. The open was up slightly and even traded as high as 65.00 on the high of the day, but could not get enough momentum to break it.
Volume was very slow at only 8,000 futures and 7.000 options as we continue to look for enough information to break us out of the sideways channel that has been forming between 60/63 on the V'07.
Demand has gotten very quiet again as we are trading at the top of the range and we estimate that a 150 pt break should uncover another good wave of demand for 9/10'07 shipment.
The export sales next week should again be better than the 6-week average, but we are really waiting for next Friday's USDA S&D report to not only answer questions for cotton, but also the grains.
Wheat, corn and soybeans were all slightly unchanged today and for the week as they also look like they are waiting for more news as the stock market took another hard hit today and closed on the 2-week lows.
Technically the market had a firm late session today and closed on the highs of the recent short term sideways trading range. Z7 again closed above the 9-day moving average and still looks friendly as we have started flagging again and will need to wait and see which way the break goes.
Let's see what the weather market brings us over the weekend, but the specs will soon lose interest in the long side if we remain to struggle higher. RSI is getting above 56 and the specs are still above 30% long as the upside is starting to struggle to find buyers.
marketing@alchempro.com
