A Little Dryness Showing Up
Presented by Heartland Investor Capital Management Inc. CTA
Soybeans:
November soybeans have rallied roughly 50 cents since early March despite crude oil weakness.
Fund rolling from July into November contracts continues supporting new crop beans.
Rumors China may reduce soybean tariffs are helping support prices.
Bean acreage ideas and possible lower fertilizer usage on corn acres may also be supportive.
Midwest dryness into mid June is being monitored closely.
Weather Outlook:
Forecasts show improving moisture across the Plains including Kansas, Oklahoma, Nebraska, and the Dakotas.
The Midwest remains relatively dry through early June.
Subsoil moisture remains adequate for now, limiting immediate weather concerns.
If dryness persists deeper into June with summer heat building, weather premium could expand quickly.
Wheat:
Chicago wheat held major moving average support and posted a stronger close near the top of the session range.
Spec trade entered near 623.5 targeting a recovery bounce.
Potential Chinese soft red winter wheat demand could tighten carryout projections.
Brazil may import more U.S. wheat later this year due to reduced South American production and feed quality issues in Argentina.
Kansas City wheat remains under heavy harvest pressure.
Corn:
Corn recovered after testing long term moving average support.
Market closed near session highs after several weak closes in a row.
China demand stories and delayed Midwest rains could help spark a short covering bounce.
Weather remains the primary driver heading into June.
Cattle:
Live cattle and feeder cattle charts remain technically weak despite short term bounce attempts.
August live cattle failed at moving average and trendline resistance.
Feeder cattle filled chart gaps but closed poorly again.
Another lower session Friday would increase downside risk toward additional chart support levels.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable to Heartland Investor Capital Management, Inc. but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK of LOSS involved in trading futures and / or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. The information contained in this newsletter is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. Provided by Heartland Investor Capital Management, Inc. a registered CTA with the NFA, of which Eugene Graner is principal. This entity is a separate legal entity from the Introducing Broker Heartland Investor Services.