DTN Morning Comments on Livestock

Meat Futures Geared for Mixed Opening

   Expect live and feeder contracts to open on both sides of unchanged thanks to a slow combination of residual selling and short covering. Likewise, lean hog should also begin with uneven prices as traders weigh improving fundamentals against preexisting board premiums.
By John Harrington DTN Livestock Analyst
Cattle:  Cash Steady-$2 HR  Futures: mixed  Live Equiv $134.88 +$1.17 * Hogs:    Cash 0.50-$1HR     Futures: mixed  Lean Equiv $ 95.26 + 0.52 ** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

Read  More
http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-10/


The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.

DTN Morning Comments on Cotton

Quiet Early Trade in Cotton Tuesday

   Trade in cotton futures is quiet early Tuesday, with the market taking its cues from outside sources. The July contract is 0.22 higher with the new-crop December up 0.40.
By Darin Newsom DTN Senior Analyst
   OUTSIDE MARKETS: China’s Zhengzhou exchange was closed for holiday. Dow Jones Industrial Average futures are 3 points lower hinting at light selling in US equities early Tuesday. Crude oil is down $0.66 at $93.93 while gold is up $0.10 at $1,467.50. The U.S. dollar index is 0.022 higher at 82.169. Grain futures are higher early Tuesday morning. 

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-10/ 


The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.

Market Update from Mike Kuta " The Squawk Trader " Part 1

April 30, 2013
Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump.
Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA. Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai. Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC. “Physical demand has been tremendous in a way I haven’t seen for a number of years,” said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. “The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good,” Rhodes said from Dubai.
Bear Market:
Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and reached a low of $1,321.95 an ounce on April 16. Since then, spot bullion has rebounded 11 percent to $1,469.54 today as the surge in physical demand offset record outflows from exchange-traded products. Gold is still lower in April, heading for the worst monthly loss since December 2011 amid a bear market. In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in “a very long time, we’re talking years,” said MKS’s Panizzutti. “In the gold souk, you see some coins left over, but the investment bars are all gone from the windows,” said Schubert at Dubai-based Emirates NBD, the United Arab Emirates’ second- biggest bank by assets. Domestic retail prices moved to a premium of about $5 an ounce from a small discount before the rout, said Schubert, who has traded the metal since 1979.

Read More
http://sweetfutures.com/2013/market-update-from-mike-kuta-the-squawk-traderr/

The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.
 

DTN Morning Comments on Grains

Grains Mostly Lower Early Wednesday

   Corn futures are lower, soybeans higher, and wheat lower at 6 a.m. CDT.
By Darin Newsom DTN Senior Analyst

6:00 a.m. CME Globex:   Corn 3 cents lower (July), soybeans 2 cents higher (July), and wheat 5 cents lower (July).
CME Globex Recap:   Generally speaking, grains posted narrow trading ranges during the CME Globex overnight session with only soybeans seeing a double-digit difference between high and low. Outside markets were bullish with most energies and the metals complex trading higher, the U.S. dollar index lower, and Dow Jones Industrial Average futures posting a solid rally.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-grains-7/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Livestock

Meat Futures Geared to Open Moderately Higher

   Look for cattle contracts to open in the black, moderately supported by residual buying interest and hopes for improving seasonal demand. Lean hog futures should also start on a firm basis thanks to further growth in the pork carcass value.

By John Harrington DTN Livestock Analyst

Cattle:  Cash Steady      Futures: 10-30 HR  Live Equiv $133.01 + 0.24* Hogs:    Cash Steady-0.50 HR  Futures: 10-30 HR  Lean Equiv $ 93.52 + 0.97** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-8/


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Cotton

Cotton Slides to New Intraday Low

   First notice day deliveries for May totaled 122. Cash business sales increased on The Seam as grower trading remained inactive.
By Duane Howell DTN Cotton Correspondent
   Cotton futures traded lower Wednesday, extending losses from a weak finish the prior day and posting a new intraday low since late February.
   Most-active July hovered off 84 points to 84.26 cents at 8:03 a.m. CDT, just off the low of its 102-point range from 85.21 to 84.19 cents on a contract volume of 3,412 lots.
   Maturing May dropped 63 points to 82.05 cents, the low of its 102-point range on a volume of 196 lots, and December fell 75 points to 84.66 cents, trading from 85.41-84.59 on 713 lots.
   May delivery notices totaled 122 lots or 12,200 bales, 2.5% of the stocks in deliverable position as of Tuesday. Newedge USA issued all the notices for a customer.
   The notices went to eight stoppers, with ADM Investor Services taking 46 or 37.7% for a customer and Term Commodities, trading arm of Allenberg Cotton Co., taking 42 or 34.4% for the house.
   The spot contract coming into first notice day had lost 1,125 points or 12% from the one-year high posted in mid-March, and its open interest had shown a steep decline. 

Read More/
http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-8/ 

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

Market Update from Mike Kuta " The Squawk Trader " Part 1

April 24, 2013
BOE Expands Credit-Boosting Program as Small Firms Targeted.
The Bank of England will extend by one year its plan to provide cheaper loans to companies and consumers and increase incentives to get funds to smaller firms, enhancing a nine-month-old program to aid the economy. The Funding for Lending Scheme will now last until January 2015, make loans to small companies more attractive and be open to non-bank lenders, the BOE and the Treasury said in London today. While credit conditions have improved since the FLS started, “there remain risks of renewed stresses in bank funding markets” because of the euro-area crisis, they said. Chancellor of the Exchequer George Osborne and BOE Governor Mervyn King are expanding the program on the eve of economic statistics that may show Britain’s economy was close to an unprecedented triple dip in the first quarter.  The announcement also precedes an audit of the U.K. by the International Monetary Fund, whose delegation visits London next month after the fund said Osborne should ease his austerity plan to aid growth. The FLS revamp will give banks “continued assurance against the risk that market funding rates increase, especially in the light of continued uncertainty in the euro area,” King said in a letter to Osborne. It will “help to maintain easier funding conditions for banks into 2015, and thereby help to support credit conditions and the recovery.”
QE Outlook:
The move comes as BOE policy makers split on whether to increase their quantitative-easing program. The Monetary Policy Committee kept its QE target at 375 billion pounds ($572 billion) on April 4 as a push by King and two other officials was defeated by a majority on the nine-member panel. Royal Bank of Scotland Group Plc (RBS) said today’s FLS extension may lower the probability of future bond purchases. U.K. government bonds opened little changed, leaving 10-year yields at 1.71 percent as of 8:04 a.m. London time. The yield on two- year notes was at 0.26 percent. “Focusing the BOE easing bias towards targeted credit measures means the need for more gilt purchases is less pressing,” RBS analysts Simon Peck and Andrew Roberts said in an e-mailed note to clients. They also said the “immediate follow through on bank funding costs is likely to be less pronounced than the launch of the original FLS.”

Read More
http://sweetfutures.com/2013/market-update-from-mike-kuta-the-squawk-trader-part-1-2/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
 

Market Update from Mike Kuta " The Squawk Trader " Part 2

April 23, 2013
Stocks turn volatile after “bogus” AP report.
Stocks turned volatile today, sharply cutting gains for a few minutes and then bouncing back, after a “bogus” Associated Press report about explosions at the White House. An AP tweet, which an AP spokesman says was “bogus,” had said there were two explosions at the White House.
Wall Street rises on strong earnings despite soft data.
Stocks rose today as strong earnings from Travelers Cos Inc (TRV.N) and others put shares on track for a third straight day of gains, although investors said recent volatility was likely to return. Gains were driven by corporate earnings, with Netflix Inc (NFLX.O) and Coach Inc (COH.N) the S&P 500′s top two percentage gainers. Netflix soared 23 percent to $214.37 while Coach was up 11 percent at $56.09. Both companies posted profits that beat expectations and Netflix also posted strong subscriber growth. Equities have steadily advanced in 2013, leading many analysts to call for a correction, although major indexes have rebounded off declines. Still, data pointing to economic weakness in the United States and China have raised questions about whether the rally will continue. U.S. new home sales rose 1.5 percent in March, slightly under expectations, according to the Commerce Department. Equities showed little reaction to the data.

Read More
http://sweetfutures.com/2013/market-update-from-mike-kuta-the-squawk-trader-part-2/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Midday Comments on Livestock

Gains Hold Across Livestock Futures

Renewed support has developed in both cattle and hog futures as traders focus on potential demand growth. The improvement of pork and beef values is helping to keep buyers active in the nearby contracts.

By Rick Kment DTN Analyst
GENERAL COMMENTS:
Livestock futures continue to trade on the positive side Tuesday morning as the focus has turned to higher meat prices and the potential for improved demand. Both cattle and hog futures have slipped from session highs, but continue to show improvement. Corn futures are trading lower in light trade at midday. May corn futures are holding 5 cent losses at midday. Stock markets are higher in light trade. The Dow Jones is 131 points higher while Nasdaq is up 37 points.
LIVE CATTLE:
Nearby live cattle futures continue to hold light to moderate gains at midday. Early support across the complex has faded slightly due to lack of additional market direction and buyer orders seemingly drying up. But the firmness through the rest of the livestock market and expectations of improving beef demand is likely to keep prices positive through the end of the session. Cash cattle activity is quiet with bids still undeveloped. It is likely that active trade will be pushed off until the last half of the week. Asking prices are starting to develop at $128 in the South and $205 and higher in the North. Beef cut-outs at midday are higher, $0.82 per cwt lower (select) and up $0.80 per cwt (choice) with light movement of 103 total loads reported (49 loads of choice cuts, 18 loads of select cuts, eight loads of trimmings, 28 loads of ground beef).

Read More:
http://sweetfutures.com/2013/dtn-midday-comments-on-livestock-4/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
 

DTN Midday Comments on Grains

Corn Lower at Midday

Grain trade is lower at midday with December corn reaching new lows.
By David Fiala DTN Contributing Analyst
General Comments
The U.S. stock markets are higher with the Dow futures up 150. The interest rate products are lower. The dollar index has been is 28 higher. Energies are flat to lower with crude off $0.20. Livestock trade is mostly higher with feeders sharply higher. Precious metals are lower with gold down $7.
CORN
Corn trade is around a nickel lower on old crop and a dime lower on new with limited fresh news. The negative action on Monday has provided follow-through selling. The weekly progress was in line with expectations at 4% planted versus 26% last year and the 16% five-year average. The current weather system is expected to keep it wet with a warm up expected after that; this is what our market action is illustrating. Any turn in the forecasts to wetter or cooler would have the potential for a bigger upside pop. China is thought to have purchased new crop corn, but USDA confirmation has been lacking. Ethanol margins remain strong in the near term. December chart support is now at $5, with resistance at the early April low at $5.25. The 20-day is next resistance up at $5.42. Remember May option expiration is this Friday. 

Read More:
http://sweetfutures.com/2013/dtn-midday-comments-on-grains-5/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
 

Market Update from Mike Kuta " The Squawk Trader "

April 23, 2013
Fed Is Firing Blanks With QE.
Hollywood is bringing back the man of steel, and one thing we can count on (other than a new body-sculpted suit), is that kryptonite will still be the only thing that zaps him of his power. While the comic geeks have Superman, investors have Helicopter Ben and the Federal Reserve that’s pumping $85 billion a month into the economy. But could it be the Fed has its own version of kryptonite that’s sapping its strength? Christopher Whalen of Carrington Investment Services seems to think so. The benefits of the Fed’s quantitative easing (QE) program are being offset by regulation promulgated from Washington, Whalen says, and therefore nullifying its stimulative ability. “When you look at all the constraints on banks in terms of lending, it’s just not being effective in terms of growing jobs, and the key thing is that even with say housing up 10% last year, there’s no credit growth,” Whalen notes. “In terms of a classical economic recovery, we’re not having that.” The Fed’s plan of reflating assets like home prices in order to stimulate the economy (and thus job growth) is admirable, but according to Whalen regulations like Basel III and Dodd-Frank are stifling lending. This is because reform legislation discourages banks from making all but the least risky mortgage loans.
In fact, Whalen notes that estimates for new loan originations in the U.S. mortgage market are in a precipitous decline; falling from $1.7 trillion in 2012 to $1.4 trillion in 2013, and perhaps below $1 trillion next year. Major home mortgage originators like JPMorgan Chase (JPM) and Wells Fargo (WFC) will likely take a hit from this decreased volume. To make matters worse, the Fed’s extended ultra low rate policy is hurting savers, as “QE is actually driving deflation now because we’ve gotten past the point where cheap funds are net-net helpful… because we’re constraining consumption,” Whalen says. “There was a time when QE in terms of the net effects early on was a benefit… but now we’re at the point where QE is really starting to hurt savers particularly, and I think that’s a drag on the economy.” Since regulation is here to stay, Whalen advocates that the Fed hike rates up a bit in the short term in order to get assets repriced from such low rates, which would help banks, investors and retirees who depend on interest income. It will take time to get housing, and thus the economy, back to normal, though. “We’ve put so much friction in the system, to expect a classical recovery is almost unreasonable,” Whalen concludes.
New home sales rise, housing recovery still on track.
Sales of new single-family homes rose in March, indicating the housing market recovery remains on track. The Commerce Department said on Tuesday sales increased 1.5 percent to a seasonally adjusted annual rate of 417,000 units. Last month’s rise followed a 7.6 percent drop in February. Economists polled by Reuters had expected sales to rise to 420,000-unit rate last month. Compared with March 2012, sales were up 18.5 percent, indicating the strength in the housing market that has helped boost the economy was on course. Sales are being set back by a lack of supply of homes on the market in some major parts of the country. While the inventory of new homes on the market rose 2.0 percent to 153,000 units, it was not far from record lows. At March’s sales pace it would take 4.4 months to clear the houses on the market, the same pace in February. A supply of six months is normally considered as a healthy balance between supply and demand. The low months’ supply should push up new home prices. The median sales price for a new home was $247,000, up 3.0 percent from a year ago. Sales last month in the Northeast surged 20.6 percent and rose 19.4 percent in the South. Those gains were partially offset by declines in the West and Midwest.

Read More
http://sweetfutures.com/2013/market-update-from-mike-kuta-the-squawk-trader-5/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Cotton

Cotton Slips Amid Slower China PMI Data

May delivery notices expected to be posted tonight. U.S. planting progress lagged at 10%. Cash business sales resumed on The Seam.
By Duane Howell DTN Cotton Correspondent
Cotton futures slipped to slight losses Tuesday, retreating from overnight gains amid weak data on the Chinese economy, on this last trading day ahead of first notice day for May deliveries.
Most-active July hovered off 26 points to 85.89 cents at 8:12 a.m. CDT, trading within a tight 59-point range from 86.25 to 85.66 cents on a contract volume of 2,301 lots.
The May contract traded off 41 points to 83.92 cents on a volume of 717 lots and December fell 29 points to 85.90 cents on a turnover of 1,001 lots.
Recent rolling from and liquidation in the May contract are expected generally to result in light delivery notices, but stocks in deliverable position are large. Notices are expected to be posted tonight.
In the news, the HSBC preliminary purchasing managers’ index for China came out at 50.5 for April, compared with a final reading of 51.6 for March, indicating slower growth in manufacturing in the world’s second largest economy and largest cotton consumer. 

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-7/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Livestock

Lean Hogs Are Set to Open Moderately Higher

Hog futures should start out moderately higher, supported by signs of improving fundamentals. Live and feeder contracts seem ready to open on a mixed basis thanks to spillover selling and profit taking.
By John Harrington DTN Livestock Analyst
Cattle: Cash Steady Futures: mixed Live Equiv $132.77 + 0.22* Hogs: Cash Steady-0.50 HR Futures: 10-30 HR Lean Equiv $ 92.55 +$1.54** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

Read More
 http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-7/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Grains

Grains Lower Again Tuesday

Corn futures are lower, soybeans lower, and wheat lower at 6 a.m. CDT.

By Darin Newsom DTN Senior Analyst

6:00 a.m. CME Globex: Corn 3 cents lower (July), soybeans 1 cent lower (July), and wheat 8 cents lower (July).
CME Globex Recap: Grains posted a modest rally early in the CME Globex session until spillover pressure from outside markets pulled most contracts lower by early Tuesday morning. Both energies and metals continue to see general pressure as the U.S. dollar index posted another solid gain overnight. Dow Jones Industrial Average futures were also lower.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-grains-6/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
 

DTN Morning Comments on Cotton

Cotton Edges Warily Ahead

China’s March imports fell 15% from a year ago. Trend-following funds cut their net longs by a sharp 18%. Cash trading remained inactive on The Seam.
By Duane Howell DTN Cotton Correspondent
Cotton futures posted slight gains Monday, trading warily after finishing lower three sessions in a row and in all but one last week in most-active July.
The July contract hovered up 25 points to 85.61 cents at 8:02 a.m. CDT, trading within a 110-point range from 85.19 to 86.29 cents on a contract volume of 2,483 lots.
The May contract, facing first notice day on Wednesday, edged up 16 points to 83.64 cents on a turnover of 691 lots, while new-crop December gained 45 points to 85.62 cents on 351 lots.
In outside markets, Dow Jones futures gained 34 points and S&P futures 4.50, while dollar index futures strengthened 0.134 to 82.980, crude oil gained 70 cents to $88.97, Brent crude added 77 cents to $100.42 and June gold advanced $32.10 to $1,427.70. Grains and soybeans were lower.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-6/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Livestock

Cattle Futures Expected Under Pressure

The increased cattle placement through March is expected to be the main focus of trade early in the session Monday. Although feeder cattle futures worked lower late last week, the sheer impact of growing supplies will likely keep markets under pressure.
By Rick Kment DTN Analyst
Cattle: Cash: Steady to $1 lower Futures: 20 to 60 Lower Live Equiv $132.55 -0.42 Hogs: Cash: Steady to 50 lower Futures: Steady to 20 lower Lean Equiv $91.01 -0.46 * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

Read More
 http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-6/


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

Market Update from Mike Kuta " The Squawk Trader " Part 1

Published on 04-22-2013

April 22, 2013
Poll Finds More U.S. Support for Keystone Than Canadian.
Americans are more supportive of the proposed Keystone XL pipeline than Canadians are, according to a poll by an analyst at the Woodrow Wilson International Center for Scholars. Seventy-four percent of Americans surveyed said they support U.S. government approval of the TransCanada Corp. (TRP) project that would carry oil from Canada through the U.S., compared with 68 percent of Canadians, according to polling by Nik Nanos, a scholar at the Washington-based institute. Americans also are more likely to say achieving North American energy independence is more important than reducing greenhouse- gas emissions, according to the poll. “The research indicates that although both Americans and Canadians believe that reducing greenhouse gases is important, energy security, particularly in the U.S., is driving views on energy issues,” Nanos said in a statement. The idea of having North America free from importing oil “trumps reducing greenhouse gases as a policy priority.”
The $5.3 billion project, which would carry bitumen from oil-sands deposits in Alberta to refineries on the U.S. Gulf Coast, has faced opposition from environmentalists who say development of the oil sands will increase greenhouse-gas emissions and the pipeline could lead to spills. The U.S. State Department is reviewing the project because it crosses an international border. Sixty-three percent of Americans surveyed said North American oil independence is more important than reducing greenhouse gases, compared with 55 percent of Canadians. Americans are also more supportive than Canadians of a continental energy strategy and the concept of common environmental standards between the two countries. The poll of 1,007 Americans was taken between March 28 and April 7, while 1,013 Canadians were surveyed between April 6 and April 9. Both surveys have a margin of error of 3.1 percentage points. 

Read More
http://sweetfutures.com/2013/market-update-from-mike-kuta-the-squawk-trader-part-1/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Grains

Grains Start the Week Under Pressure

Corn futures are lower, soybeans lower, and wheat lower at 6 a.m. CDT.
By Darin Newsom
DTN Senior Analyst
6:00 a.m. CME Globex: Corn 7 cents lower (July), soybeans 9 cents lower
(July), and wheat 7 cents lower (July).
CME Globex Recap: Grains opened lower Sunday evening and stayed lower through
early Monday morning. Pressure continues to come from noncommercial traders
despite support from outside markets. The grain sector was the only one showing
consistent losses with solid gains seen in most metals and energies. The U.S.
dollar index was quietly higher while Dow Jones Industrial Average futures
posted a strong gain overnight.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-grains-5/ 


The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Cotton

Cotton Trades Little Changed Nearby

Market moves cautiously as a volatile trading week nears an end. Prices fell in China. Cash trading turned inactive on The Seam.
By Duane Howell DTN Cotton Correspondent
Cotton futures moved cautiously within tiny ranges Friday as a volatile trading week that began with a meltdown in many commodities and sharp losses in stock markets neared an end.
Most-active July eked out a three-tick gain to 85.51 cents at 7:51 a.m. CDT, trading within a mere 35-point range between 85.25 and 85.60 cents on a contract volume of 1,466 lots.
Spot May also traded up three ticks, hovering at 83.51 cents on a contract volume of just 481 lots, and new-crop December edged up 28 points to 85.36 cents on a turnover of 490 lots.
July closed last Friday at 87.62 cents, and it needs to settle at or above that this afternoon to prevent its third consecutive weekly loss and fourth in the last five.
In outside markets, U.S. stock index futures traded higher and European shares firmed in morning dealings, up for the first time in six days, while dollar index futures softened. Action was awaited from G20 finance ministers to stem recent decline in global growth.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-5/ 

The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.

DTN Morning Comments on Livestock

 

Livestock – Light Trade Expected Early Friday

  Cattle traders will continue to focus on the development of cash cattle trade through the day Friday. The release of the Cattle on Feed report is getting some attention following sharp feeder cattle losses on Thursday.

By Rick Kment DTN Analyst

Livestock:
Cattle: Cash $1-2 HR Futures 10-30 LR Live Equiv $132.97 -___FCKpd___0.27 Hogs: Cash Steady-.50 LR Futures Steady-20 LR Lean Equiv $91.47 +___FCKpd___0.41 * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue

 

Read More:

http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-5/

 

 

The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.

DTN Morning Comments on Grains

Grains Lower Early Friday

Corn futures are lower, soybeans lower, and wheat lower at 6 a.m. CDT.

By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: Corn 1 cent lower (July), soybeans 1 cent lower (July), and wheat 5 cents lower (July).
CME Globex Recap: Grains were trading near overnight session lows early Friday morning despite possible support from bullish outside markets. The U.S. dollar index was down while Dow Jones Industrial Average futures and most other commodities rallied. The biggest surprise in grains may be in the winter wheat markets as early morning temperatures are below freezing as far south as the Texas Panhandle once again.

Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-grains-4/

The risk of trading futures and options can be substantial. Trading foreign exchange carries a high degree of risk, and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by Sweet Futures 1, LLC shall be construed as a solicitation. Sweet Futures 1 does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by Sweet Futures 1. Past performance is not necessarily indicative of future results.

DTN Midday on Livestock

Livestock Futures Rally at Midday
Strong gains have quickly stepped into the livestock markets. Given the lackluster moves in grain futures and sharp outside market moves, traders are finding livestock futures attractive.
By Rick Kment DTN Analyst

GENERAL COMMENTS:
Livestock futures have broken away from the early losses Wednesday, and are posting strong triple-digit gains at midday. The lackluster moves in the grain complex and sharp outside market pressure have allowed for increased trade interest step back into livestock futures. Corn futures are trading mixed in light trade at midday. May corn futures are holding 1 cent losses at midday. Stock markets are lower in active trade. The Dow Jones is 173 points lower while Nasdaq is down 74 points.
LIVE CATTLE:
Despite the light to moderate pressure seen through the first couple hours of trade, active buying has developed. Traders quickly stepped back into the live cattle futures market near midday despite the lack of movement in the grain complex. Sharp losses are seen in other outside markets which has sparked both commercial and investment buyer interest back into the live cattle market. All nearby contracts are holding strong triple-digit gains. Cash cattle trade remains undeveloped Wednesday morning, although bids have been more available as the morning has progressed. Bids of $125 are seen in the South and $199 to $200 are available in the North. But this is still far from asking prices of $128 to $129 in the South and $205 and higher in the North. Beef cut-outs at midday are higher, $0.86 per cwt higher (select) and up $1.51 per cwt (choice) with moderate movement of 138 total loads reported (61 loads of choice cuts, 44 loads of select cuts, 4 loads of trimmings, 29 loads of ground beef).
FEEDER CATTLE:
Aggressive gains have developed in all but front-month feeder cattle futures on the electronically traded complex. The rally has been led by the surge in live cattle futures which are holding triple-digit gains at midday. The combination of firmness in the boxed beef values and potential cash market support is keeping gains solid at midday.
LEAN HOGS:
Strong gains have quickly developed in the lean hog futures market during morning trade. The pressure in the financial and energy markets seems to be drawing some moderate support back into livestock markets. June futures are holding $1.55 per cwt gain at midday, which is sparking additional volume on technical support. Cash prices are lower in moderate trade on the Iowa/Minnesota morning cash hog report. The weighted average price fell $0.57 per cwt to $78.76 per cwt with the range from $66.00 to $80.00 per cwt on 2,577 head reported sold. The National Pork Plant Report posted 263 loads at midday. Lean hog index for 4/15 is at $81.87, down 0.19 with a projected two-day index of $81.69 down 0.18.
PORK BELLIES:
The 14- to 16-pound belly markets are unreported on the midday carlot report.
Rick Kment can be reached at rick.kment@telventdtn.com
(SK)
Copyright 2013 DTN/The Progressive Farmer. All rights reserved.

DTN Midday on Livestock

DTN Midday Comments on Grains

Grains Mixed at Midday

Corn and wheat futures are firm at midday; beans slightly lower due to weather. Outside markets are bearish.
By David Fiala DTN Contributing Analyst

General Comments
Corn and wheat futures are firm at midday; beans slightly lower due to weather. U.S. stock markets are lower with Dow Jones futures down 150. Interest rate products are higher. The dollar index is 80 higher. Energies are lower with crude down $1.80. Livestock trade is firmer. Precious metals are mixed.
CORN
Corn futures are 1 higher in the May to 8 higher in new crop at midday. Trade is near the daily highs. Wet, cool weather and low planting progress numbers on Monday has sellers in corn backing off. The ethanol number this morning was lower than expected, which pressured corn briefly. Weather looks to keep everyone out of the field in the near term with hints at a pattern change at the end of the month. May futures have nearby support at $6.47, the 10-day moving average, and resistance at $6.74, the 20-day. Expect the market to likely repeat the mixed pre-midday action during the rest of the day.
SOYBEANS
Soybean futures are 1 to 4 lower after a mixed overnight trade. Meal is up $3 in the May to $1 lower in the December, bean oil is down 8 to 20 with new crop weaker. Spread movement is fairly neutral at midday. Outside market weakness has limited buying in beans, which may continue into the afternoon. Argentine farmers are reluctant to sell on inflation fears and Chinese prices have held up well. Basis has stayed firm as crush margins remain adequate and export interest has been best for soymeal. The May soybean chart has nearby support at the $14.08 20-day moving average, then the 10-day down at $13.93. Resistance is up at the 100-day at $14.26.
WHEAT
Wheat futures are up 7 to 11 at midday with a firm tone. Weather is expected to create additional problems with delays and damage in the near term. Chicago wheat is above the 10-day and 20-day moving averages at midday, the 50-day up at $7.18 is the next resistance. The 100-day would be the next level up at $7.81 if we can break above the 50-day. Prices are near the April highs at midday, so do not be surprised to see buys stops above the market if we find the buying needed to push to new April highs. Fundamentally Minneapolis wheat may take the upside leadership role again with e planting delays expected with the Dakota snowpack, but the chart buying has Chicago the firmest midday market.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Trading Adviser
(BS)
Copyright 2013 DTN/The Progressive Farmer. All rights reserved.

DTN Midday Comments on Grains

DTN Morning Comments on Grains

Commodities Hold Steady Early Wednesday

Corn futures are lower, soybeans higher, and KC wheat higher at 6 a.m. CDT.
By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: Corn 1 cent lower, soybeans 4 cents higher, and wheat 1 cent higher.
CME Globex Recap: Outside commodities were lower again early Wednesday morning as the U.S. dollar index posted a solid rally. Much of the strength of the index was due to the Japanese yen sliding lower again on continued pressure from recent easing action by the Bank of Japan. Grains were quietly mixed, with solid buying in May soybeans once again the main feature.

Read More
 http://sweetfutures.com/2013/dtn-morning-comments-on-grains-3/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
 

DTN Morning Comments on Livestock

Cattle Pits to Open Moderately Higher

The cattle complex should start out on a firm basis, supported by short-covering and last week’s premium feedlot sales. On the other hand, the lean hog pit seems geared to open mixed thanks to follow-through buying and the large discount of the cash index.
By John Harrington DTN Livestock Analyst
Cattle: Cash Steady Futures 10-30 HR Live Equiv $132.81 + .19* Hogs: Cash Steady-.50 HR Futures Mixed Lean Equiv $90.05 + .31** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue


Read More
http://sweetfutures.com/2013/dtn-morning-comments-on-livestock-4/

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

DTN Morning Comments on Cotton

Published on 04-17-2013

Cotton Trades Flat within Tight Ranges

U.S. stock index futures slide and dollar index strengthens. Cash business sales increased and grower sales were inactive on The Seam.
By Duane Howell DTN Cotton Correspondent
Cotton futures traded a few ticks below unchanged Wednesday after opening the overnight session flat and bouncing to modest gains on the heels of a two-day skid.
Most-active July hovered off six points at 85.36 cents at 8:04 a.m. CDT, trading within a tight 71-point range between 85.24 and 85.95 cents on a turnover of 2,064 lots.
Spot May, facing first notice day on April 24, traded off seven ticks at 83.28 cents, moving between 83.23-83.87 on a volume of 1,090 lots, and December eased off nine points to 84.66 cents, trading from 84.64-85.15 on 261 lots.
U.S. stock index futures fell, pointing to a weak start on Wall Street despite recent positive corporate earnings report. Markets later in the day will take a look at the Federal Reserve’s Beige Book report on economic conditions. European shares fell for the fourth session in a row and Asian stocks were boosted by Tuesday’s positive U.S. data.

Read More
 http://sweetfutures.com/2013/dtn-morning-comments-on-cotton-4/

 The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

Important Notice from CME Group

Message from the CME Group in regards to Performance Bond (Margin) changes

Published on 04-16-2013

CME NOTICE # : 13-182

 

Please note there are margin increases to COMEX Metals and NYMEX Energies.

 

SUBJECT: Performance Bond Requirements: FX, Metals, and Natural Gas Outrights; Natural Gas Intra-Commodity Spread Charges; FX and Metals Volatility Scans- Effective Tuesday, April 16, 2013

 

FOR THE FULL TEXT OF THIS ADVISORY :

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv13-182.pdf

 

 

---

FX, Metals, and Natural Gas Outrights; Natural Gas Intra-Commodity Spread Charges; FX and Metals Volatility Scans 

 

 

As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed below.

The rates will be effective after the close of business on Tuesday, April 16, 2013.

 

 

 

The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.

New Margins from Sweet Futures

New Margins Effective at today’s close:

Gold

Old IM $5,940 MM $5,400

New IM $7,040 MM $6,400

Silver

Old IM $10,450 MM $9,500

New IM $12,375 MM $11,250

 http://sweetfutures.com/2013/new-margins/

 The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.