Cattle and Wheat Lead the Way in Tuesday’s Trade
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Today’s Headlines Flash News
Grain and Oilseeds Wrap Up Wheat Wheat prices were the upside leader for the grain markets for a second straight day, as drought concerns for western growing areas remain in the spotlight. The July Chicago contract will need to establish itself above the $6.00 to $6.10 zone to expect upside momentum has a chance to stick. July Kansas City wheat is making the biggest jump on the drought fears, closing back above its 20-day moving average at $6.60 today and opening the door for another run into the $6.80 to $6.90 zone. Weather concerns are pushing prices higher, but plan on using rallies for sales opportunities as world wheat supplies are far from tight. |
Corn
July corn futures haven’t wanted to hold losses under $4.50 so far, but we continue to see a pattern where early strength is erased as the day goes on. The market is below all of its major moving averages but we feel a move into the $4.40 to $4.50 zone offers a short-term buying opportunity ahead of potential summer weather volatility.
Soybeans
Soybean prices ended the day with small losses, as the market sees calmer action after both a failed downside and upside breakout recently. As demand news remains lackluster, we’ll use small bursts of strength to enter bearish positions, expecting the July contract has room for a relatively large pullback. It’s going to take a steady stream of positive headlines to rejuvenate upside price action beyond $12.00.
Cattle
Cattle prices soared to fresh contract highs with June live cattle clearing $250 while May feeder cattle pushed past $377. Feeders would close nearly $3.00 off highs set earlier in the session so we’ll want to see quick follow through buying interest to the topside to avoid the look of a potential short-term high. Ongoing strength in the cash markets and resurgence of strength in the stock sector have made it easy for cattle markets to reach new highs.
Hogs
June hogs extended their recent downside move to another fresh low and now sit right on top of critical support that will need to hold at $102. The 200-day moving average looks like the last line of defense, otherwise there’s room for June hogs to slip another $10.00. We like taking a low-risk short on the long side from current levels, expecting good support will surface again in the low-$100.00 area. Market strength should be able to return, especially while cattle markets reach fresh highs.
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