Wheat futures, especially in Kansas City, performed the best today on short-covering as China made a big wheat purchase and frost last week damaged some of the crop; more freezing weather is coming this week. The speculative funds hold large short wheat positions (against long corn and soybeans), so wheat is “fueled” for a rally should significant crop damage occur. The July CBOT Wheat contract has recovered over 70 percent of its 2-day loss resulting from the March 28 ^th USDA reports.

Old-crop corn and soybean futures gained on new-crop contracts as traders prepare for Wednesday morning’s USDA update to the supply-demand tables. The last CFTC report showed that the funds liquidated a big part of their long corn and soybean positions after the bearish USDA Grain Stocks report. Significant rainfall should fall in the Corn Belt.

The appearance of “bird flu” in China needs to be monitored for potential impact on U.S. exports. So far, it doesn’t seem to be a factor.

Cattle futures managed small gains as traders anticipate the beef market could turn higher soon as the weather warms up. The same could be said of Lean Hog futures.

Corn May +4.5 633.5; Jly +2 619; Dec -3 532 Bean May +16 1378; Jly +14 1358; Nov +4 1232   Meal May +1.5 393; Oct -1 343   Oil +69 4952 Wheat May +13.5 712.5; Jly +13 717.5   KC Jly +19 752; MGE +11 797 Oats Jly +4 356 Rice +8 1558

LC Apr +25 12627; Aug +50 12275; Dec +50 12855 FC Apr +17 14275; May +45 14475; Aug +55 15175 LH Apr +50 8052; Jun +85 9055; Oct +52 8187 Milk Apr +13 1765; May +27 1861

US$ +.25% Dow +48 14613 SP +10 1563 NAS +18 3222 Tran +54 6092   VIX -.73 13.19

WTI +66 9336 Brent +66 10478 Gas +4.5 291 NG -4 408 HO +4.4 295.4 Eth +4 246

2-yr unch 0.23% 5-yr +.01 0.70% 10yr +.03 1.74% 30yr +.03 2.91%

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