OPENING CALLS
May 9, 2008 By: Brian Hoops, President
Corn: 8 to 10 higher on weather concerns.
• The 6-10 day forecast is calling for two rain
events over the next 10 days with cooler than
normal temperatures.
• The USDA could lower their production
estimate, which would be a bullish surprise for
the trade.
Soybeans: 12 to 15 higher on overnight trends.
• Palm oil futures were higher overnight.
• Crude oil is at new all time highs overnight.
• There is no end to the farmers strike in
Argentina.
Wheat: 12 to 16 higher on improving demand
trends and technicals.
• Tunisia purchased 109,000 mts of wheat.
• The downtrend on daily charts has been broken.
Live and Feeder Cattle: 5 lower to 5 higher on
overbought futures.
• Some trade occurred in Nebraska at $147-$148,
down $1 to $2 from last week’s $149. At least
half of the showlists in the North are still for
sale and the South has yet to trade.
• $155 should be strong resistance for boxed
beef values.
Lean Hogs: 5 to 10 higher on stronger cash trade
and surging cutouts.
• Cash hog trade remains very strong as packers
need to bid up for cash product.
• Stronger cutout values will keep packer
margins in the black.
Our newsletter this week is titled "What to
Expect in May." This week's newsletter is 20
pages in length and gives you the insight on how
corn, soybeans and wheat will trade in the month
of May. In addition to focusing on the
fundamentals and technicals of the market with
specific recommendations for corn, soybeans,
wheat,
lean hogs and live cattle; this week's
newsletter also looks at such news items as the
four Tyson pork plants banned by Russia; a U.S.
Senator's decision to proceed with a bill to
freeze the new national biofuels mandate; a look
at trading volume at the KC Board of Trade, the
first quarter profits of Kelloggs; and a look at
planting decisions of producers. This newsletter
is a must read if you are a hedger or trader of
commodities. Clients receive web access as a
free service, access is available for a small
monthly fee to non-clients. |
