China’s Shanghai Composite closed lower for the fifth consecutive session, with pressure coming on lower energy prices and profit-taking from the latest Shanghai/Hong Kong trading link.
Trend-following fund traders (hedge funds) still hold a hefty net long position. First quarter pork production is expected to be down just 110 million pounds from the 4th quarter as compared with a drop of 489 million pounds last year.
The hog market closed higher for the 4th session in a row yesterday as February hogs pushed up to the highest price level since October 15th.
Cocoa may find early strength this week with the weakness in the Dollar, but I’m still looking skeptically at any rallies.
Cocoa is holding its ground above the late January/early February lows, and could benefit from the oversold condition.
The sugar market faces the first global supply deficit in five years this season, even if the deficit is a small one.
The bull camp gets the early advantage in the S&P 500, with an upside retracement target coming in at 1977.70.
For Natural Gas I think 4.11 will act as initial support today and below there the 4.06 price level. As for soybeans The 2014/15 main crop harvest is already underway, and reports are that there may be over 100,000 tonnes of cocoa stockpiled…
On top of weekly sales Thursday, private exporters reported a sale of 115,000 tonnes of US soybeans to China. Weekly export sales for soybeans came in at 2.565 million tonnes.
Soybean oil and palm oil bounced yesterday after better than expected China economic news, but December Soymeal closed lower and also pushed to new contract lows.