OptionEye Morning Market Macro Outlook - May 12th
Global reserves on the upswing has got the wheat market on edge this morning. Wheat is 12 cents lower here which isn't bad considering we are 10 cents off our lows. Corn is down 3 and beans are basically unchanged.
Friday's report was bullish the front end and bearish the back end for corn and beans. Corn bulls wanted more all together so we sold off but sold off more in the back months than the front months. Soybean spreads acted the same but the underlying market rallied in beans. So Friday was a good day to be bull spread with corn profit takers and bean shorts getting squeezed.
The next biggest story would be the move in the 10 year. Inflation stories in the UK papers over the weekend have got bond markets lower here with yields higher. We are at 2.64% up from the 2.60% level we have been stuck to for weeks.
Stocks are better as we take a cue from Europe with their stocks up .15% to 1.00%.
Gold is higher by $8.19 to $1296.98 and oil is higher as well to $100.48 up .49 cents.
Mondays have been quiet as of late, lets hope this move in the bonds and wheat can give us some action.