The market release triggered buy-stops for soybeans.
SOY
The soybean market traded higher attenuated by good turnover and buying activity. Reports of hot and dry conditions in the southern regions combined with a low baseline projection estimate sent the market into an upward path. Meal followed allowing oilshare to setback on meal / oil spread activity. In other options trade: ABN Amro purchased 1000 May bean calls at 25 ½ -26 ½ c. Newedge spread 500 May / March oil at 37 pts. Turnover which had been higher started to moderate during the session.
GRAINS
Grain futures worked higher though the upturn was that of following a stronger soy complex. March corn futures hit buy-stops when 5000 contracts were purchased shortly within a half hour of the open. Corn and wheat were followers today of a higher soybean and meal market. Corn spreads were firmer with March/May at 2 ¾ c, up 1c. March contracts in corn continue to liquidate / get spread forward.
AT 12:00 THE MARKETS HIGHER ACROSS THE BOARD:
HIGH LOW
March beans - up 13 12.49 ¾ 12.36 ½
March meal - up 5.00 327.50 320.50
March oil - up .22 5295 5265
March corn - up 7 6.43 ½ 6.35 ¾
March wheat - up 5 6.40 ¾ 6.33 ¼
March canola - up 3.70 539.30 535.60
FUND Recap -
bot 5000 beans
bot 7000 corn
bot 2000 meal
bot 2000 oil
CLOSING COMMENTS
The markets continue to trade in wide ranges. We are still the midst of a weather market, for sure. If the market were certain of the production outlook forBrazil, we would not be at the top of the trading range. We continue to define these trading ranges, occasionally venturing to the upside of the most bullish markets for now, which is soybeans.
