Wheat Pops
A lower forecast for the winter wheat crop spurred buying in the Chicago and
Kansas City wheat pits. May wheat
(
WK1 |
Quote |
Chart |
News |
PowerRating) was in an imperfect
pullback situation, but rallied above the high of the low-bar pullback to match
a one-month high at 272. Wheat is up 7 at 270 3/4.Â
The rally in wheat is prompting follow-on buying in corn
(
CK1 |
Quote |
Chart |
News |
PowerRating),
which was looking for a reason to come back from six consecutive losses that had
left it at a contract low. Corn is up 3 1/4 at 197 3/4.
In the meats, pork contracts are off sharply as traders
respond to Japan’s lifting of the ban on imports of European pork. June lean hogs
(
LHM1 |
Quote |
Chart |
News |
PowerRating)
are off from their highs, down 1.700 at 69.475 and May pork bellies
(
PBK1 |
Quote |
Chart |
News |
PowerRating)
are off 2.675 after touching limit-down levels. Bellies gapped down out of a Pullback From Lows
setup and have traded straight down from their opening tick, finding support at
the April 19 low. Pork bellies are in a well-defined head-and-shoulders top at
their neckline.
Coffee
(
KCN1 |
Quote |
Chart |
News |
PowerRating) continued to give back the
best gains in six months won on Monday and has erased all of the 7% rise. The
contract is finding support again at the 60.00 level, an area which is shaping
up to be the psychological support.Â
As mentioned in yesterday’s Futures Market Recap, despite
edginess about the potential for ever-higher highs in unleaded gasoline
(
HUM1 |
Quote |
Chart |
News |
PowerRating),
several factors left gasoline vulnerable to a decline. Unleaded is now off .0256
to .9870. Â
In currencies, the bottom has fallen out from underneath
the
Canadian dollar
(
CDM1 |
Quote |
Chart |
News |
PowerRating). This contract
is still on the Momentum-5
List.