OptionEye - Macro Outlook - May 5th

[ShelladyOptions]

Good morning. 

Russia/Ukraine still in the headlines. Gold higher, stocks lower on more unrest. 

Corn up 1, soybeans unchanged and wheat the leader up 12 cents with the Ukraine problems at the forefront. 

Gold up $14.10 to $1313.72. Oil is up .53 cents to $100.29. 

The 10 year yield still telling us that we are not out of trouble and is trading at 2.57%.

China manufacturing gauge shows a continued slowdown. That will have markets worried today. 

The dollar is unchanged at 79.50 down .01. 

Stcoks are lower with the Dow futures down 62.00. 

May Day Bank Holiday in London could keep things quieter than normal. 

[Shaggy98]

Ukraine is the forefront of the wheat move higher?  Isn't the drought a bigger concern?

[Hobbyfarmer]

this drought is a non issue. The USDA and wheat tour has the adequate harvest and carry over as a done deal.  Move along, old news, nothing to see here.

Canada has most of last year's harvest to fill the void. Besides some field in Maryland will pick up the short fall.

[Hobbyfarmer]

iWent to the Warren Buffet/Charlie Monger show Saturday, one of the company's they own makes cutter tools for industrIal machining, they set new all time record sales in March and April.

[k-289]

If one field in Maryland picks up the short fall  - pretty well explanes it ---

[Palouser]

Ukraine is dry too. Their currency has fallen by 40% and most fertilizer is imported and use may be way down. The spring planted corn acreage is liable to be down a lot - meaning our main competition in the N Hemisophere is hurting. China's investment in leasing corn ground there must look like the black swan ate it by now.

Ukraine just can't get a break.