What's Up, What's Down: Rice Sharply Up, Corn Up, Gas Sharply Up

Comments for Thursday, May 8 (reflecting back at Wednesday’s price action)

GRAINS
Report Today: Export Sales. The monthly crop production along with the supply/demand report are coming out tomorrow morning. Sharply higher closes for rough rice, soybeans and bean oil while higher for corn and soymeal.

Lower settlements for Minneapolis, Kansas City and Chicago wheat. All wheat continues to look lower overall but has held its nearest support areas so far and could retrace higher in the short term. Corn continues to consolidate (over one month) near all time highs. Corn should test its highs sooner or later.

Oats closed lower not quite taking out its weak double top and is in a bull pennant now with the 450 area my next objective. Rough closed higher for the 4th straight trading session ending up the daily 50 cent limit. The next support area is around the 200 area still looking toppy overall but with little resistance overhead which could lead to further retracements higher in the short term.

The bean complex closed strong but beans and meal are in bear triangles and should continue lower overall. The bean oil is a little trickier and could be forming a possible bottom.

ENERGIES
IA GAS STORAGE. Sharply higher closes across the board again with the crude and heating oil along with the RBOB making new contract highs and closes again. Natural gas is trading close to its highs also looking very strong.

CURRENCIES
Lower closes for the Euro Fx, Swiss Franc, British Pound, Japanese Yen, Canadian dollar and Aussie Dollar while sharply higher for the dollar index. The euro and franc broke down from their bear flags while the yen did also but rallied back significantly off its lows meaning this market could be higher on Thursday.

Either way all three of these currencies still look lower over. The pound broke sharply making its lowest low and close since the end of February and continuing its downward momentum of lower highs and lower lows. The Canadian Dollar also closed lower and is now in a bull pennant still near the upper end of its sideways pattern. The Aussie Dollar also settle lower but still acts like it will test its highs soon. The dollar index closed sharply continuing its upward bias.

MEATS
A higher close for pork bellies and feeder cattle, mixed for live cattle while lower for lean hogs. June cattle settle unchanged still looking toppy in the short term while forming a large potential bottom at the same time. Cattle still have a gap above and below with strong support area under 9125 basis the June contract.

Feeder cattle also are forming a possible large bottom but its critical for the August contract to hold the 10720 area. Feeders do have support under 10620. Hogs filled part of the large gap that was made on Tuesday and is still in the process of forming a large possible bottom. Bellies closed higher again but near session's lows trying to bottom overall.

INTEREST RATES
The eurodollars settled unchanged while the notes and bonds closed higher this. The eurodollars are trying to bottom while the bonds and notes rallied to settle higher after making new recent lows. However, the latter two still look lower overall.

INDICES
Reports Today: Jobless Claims, Wholesale Trade. Sharply lower closes for the cash and down futures along with the S&P and Nasdaq while lower for the Nikkei.

The cash and Dow futures broke down form their bull flags which is generally not good in at least the short term. The S&P's, Nasdaq and Nikkei have no changes technically after today's action. All of the indices continue to look higher overall.