Marketline Report for Wednesday, May 1st
This is Bob Larson with the Market Line Report for Wednesday, May 1st. A one year rally is quickly erased in the cattle market. From the floor of the CME in Chicago, here's Scott Shellady.
SHELLADY ... "As we sat down in our booths here this morning, we took a look at the live cattle chart and it's pretty brutal. We had a one-year-long rally, we probably gained about $20 and then overnight it seems like we've given, from the highs, half f that back, say $10. That's been pretty brutal so keep an eye on that. We'd like to see really what was the reason for that. And that brings me to point number 2. When we're searching for reasons out there, and sometimes we have to search pretty hard, but I don't think we have to on this one, is that we had the managed money, the funds, they were very long cattle futures on this rally and it looks as though they kind of started to take some money off the table and kind of get rid of some of their longs and profit take. So, as they say, we go up the escalator and down the shaft, this is going to be largely due to not fundamentals, but I think that we saw that managed money take some money off the table."
Chicago May Wheat prices closed yesterday dn 8 ¼ at 418 ½
May Corn was up 1 ¼ at 353 ¾
Portland prices for soft white wheat of Ordinary Protein for Apr ended the day unch ranging from 5-75 to 5-90 Hard Red Winter wheat with 11 ½ % protein, prices for Apr were dn 3 ½ ranging from 5-56 ¼ to 5-81 ¼ DNS wheat with 14 % protein, prices for Apr were dn ½ ranging from 5-95 ¼ to 6-05 ¼
Live Cattle for Apr were dn $1.02 ½ at 123.75 May Feeder cattle are dn $1.80 to 141.52 ½ Apr Class III milk was dn .01 cents at 15.96
