Stock Markets for April 13, 2011


Wheat Theory April 13, 2011




At the close of the CBOT deal in May, the price of wheat fell 6 cents (1.7%) to $7.52 a bushel. The US weather agency is forecasting heavy rains in the Great Plains region, raising market expectations for winter wheat quality.

However, other wheat-growing regions (Texas և Oklahoma) are expected to receive less moisture than necessary, so wet weather can be uncomfortable for the crop. However, traders are focusing on rain reports from Kansas և Nebraska, which should brighten the harvest season as other US states face rain threats. In all of these cases, traders chose to partially close their long positions.

Also, export data shows that the Middle East continues to buy US wheat, albeit in small quantities. The fall in demand is exacerbated by high prices.




Led by analyst Vladimir Donin
InstaForex Group of Companies © 2007-2011:





Livestock Review April 13, 2011


Livestock futures rose in a series of cheap buys on Wednesday. The foreseeable future is already a week and a half, which is not much. CME was up 0.60 cents (0.51%) at $1.1827 per pound at the close in April. The June trade closed at 0.17 cents gaining $1.3302 a pound.

Future growth Due to the weakening of the US dollar, export demand has increased or import demand has decreased.

The devaluation of the US dollar will cost those who trade other currencies in the future dearly.
Another source of market support is weak hog prices. In the conditions of the current supply deficit, they have increased.

Market participants believe the growth will continue given last week's tremendous selling. On the other hand, with more meat on the market, beef prices drop in mid-April. Lower prices are essential for demand growth. At the same time, export sales can support the market. However, many traders are concerned about the high wholesale price as it can do the opposite.

Those concerns were heightened after the US Department of Agriculture announced wholesale prices would rise by 0.43 cents a pound.




Led by analyst Vladimir Donin
InstaForex Group of Companies © 2007-2011:



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