Wet Soaking Grain Specs
Some of the heaviest rainfall of the year fell across major portions of the
grain belt, sending corn back to probe multi-year lows. Monday’s Commitment of
Traders Report with Options showed speculators remained net long corn,
while fund traders were net short over 18,000 contracts. Corn is on both the Implosion-5
and Pullback From Lows
lists. Soybeans and the leading contract on the Implosion-5 List, soybean meal,
are also falling.Â
The euroFXÂ attempted a move to the upside after a
gap-down opening, but has been unable to maintain any upside momentum this
morning. The futures for the Euroland currency is falling despite favorable
business sentiment and economic growth figures out of Germany and Italy. News
that the EU President hinted the European Central Bank would not be raising
interest rates soon could lead to market sentiment that the recent
50-basis-point hike in European rates is not excessive, will not hamper an
economic recovery and could assist the Sep euroFX to break above its most recent
resistant band at .97000.Â
Sugar’s powerful comeback from last week’s pullback placed
the October contract back on the Momentum-5
List. Sugar is making headway again to the upside, remaining near its recent
contract high.Â
In stock index futures trading, the Sept S&Ps pierced to
a new 20-day high in Monday’s trade, leaving a Turtle Soup Plus One
Sell setup below the old 20-day high of 1511. The S&Ps are trading back
below the psychological 1500-level.Â
Going the other way, cotton is making good on its
Turtle Soup Plus One Buy
setup off a one-month low.Â