Funds Expected to Return Next Week

May 27, 2011 10:40 AM

This information is provided by Archer Financial Services, Inc. 800-933-3996.

Traders at the Board of Trade started the week in a bad mood, as July corn crashed nearly 50 cents from its Monday high to its Tuesday low. The rest of the week was spent steadily recovering from that sell-off until July corn finished the week just a mere 1 cent below where it settled last Friday. July soybeans spent the week in a sideways pattern as it oscillated on either side of its 100-day moving average. 

It appears to be a market that is preparing for a break out, one way or the other, next week. The strongest ag commodity of the week was the Minneapolis wheat as it rallied over 78 cents from its early week low. The Northern Plains continue to be plagued by excessive rains as they try to plant the last 46% of the spring wheat crop. 

The market will be expecting an announcement on Saturday regarding the resumption of Russian wheat onto the world export market. This, along with weather, will set the tone for a holiday shortened week of trade. In addition, look for additional fund money to move into the commodity markets at the beginning of June, before the large funds begin rolling out of their July positions the following week.

The cash trade, especially in corn, will be watched closely next month as the commercials attempt to get their hands on the remaining 2010 inventories. There will be a lot of news to digest next month and the market will be ultra sensitive to every bit of it given the historically tight stocks that exist in all of the agricultural commodities. It is very important to have a plan laid out on how you wish to market your crop as well as manage margin calls in what will most certainly be a very volatile summer. 

Have a great weekend and a special thanks to all that served this great country!







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