With a recent TIC report showing ongoing foreign investor interest in US Notes and Bonds, it is clear that US Treasuries and the US currency are set to remain in a very limited group of flight to quality instruments.
Commodity Low Seen Before the End of May!
While the recent change in leadership in Greece and France cast doubt on past austerity pacts and the uncertainty has injured global confidence, it isn’t a given that the global recovery attempt will be completely foiled by this bump in the road.
Cattle: Significant Breaks Appear To Be Buying Opportunities
Cattle may continue to decline over the near term under the bearish influences of declining equity and financial markets in Europe, but significant breaks would appear to be buying opportunities.
Energy: The Macro Tone is Negative for the Crude Complex.
The crude oil complex is under pressure from recent stream of soft global economic readings, the uncertain European debt situation and the continued build of US supplies
Metals: Fears of Sagging Global Demand Pressure
With an empty US report slate today, gold is likely to see some impact from two Fed speeches scheduled for this morning.
Wheat: With Good Weather, Can Not Rule Out Another Leg Down Into Harvest
The Wheat Quality tour of Kansas had participants expecting a yield near 49 bu/acre and Kansas production near 404 million bushels as compared with 35 and 276.5 million last year.
Corn: If Weather Stays Good, Can Not Rule Out Another Swing Down
Traders are using a yield estimate of 164-166 for the report next week which leaves ending stocks near 1.8 billion bushels.
Soybeans: Short-term Weather Outlook Remains Bearish
The reversal this week may attract some short-term profit-taking but the tightening stocks outlook remains a key supportive force.
Currencies: Dollar Should Hold Early Gains; Needs Good Claims to Continue Up
While the tone of recent US economic data was improved by Tuesday’s ISM number, overseas risk concerns remain the Dollar’s main source of support.
Equities: May Not Take Much To Inspire a Technical Rebound
by Dave Hightower on May 16, 2012
While the trend in the indices point down, we can’t rule out the possibility of a near-term technical rebound.