Today's Futures Analysis summary

Treasury markets are continuing to feel selling pressure. Offers continue to cap any gains in the June T-Bonds and June T-Notes. There is just too much supply available at this time. The Fed’s buyback program, however, is helping to cushion the increase in interest rates.

Equity futures recovered nicely yesterday after spending most of the day on the minus side. Trading has been light this week ahead of late Thursday’s release of the Fed’s bank stress test result and Friday’s U.S. Non-Farm Payrolls Report. Most of the action this week has been confined to a range which indicates market participants have not been willing to pick a side at this time.

The U.S. Dollar has had a choppy two-sided trade so far this week. Currency markets have for the most part been confined to a range. The lack of any important U.S. economic reports until Friday’s Unemployment Report is being blamed for the lackluster, directionless trading. The focus is on the June Euro this week as the European Central Bank decides on the direction of interest rates on May 7th. Investors expect a rate cut to 1% but the big news will be the announcement of the ECB’s new asset buyback program.

June Gold has been trading higher this week although rallies have been limited. Investors are mixed as to why they are buying gold at this time. Some are buying in anticipation of inflation because of the massive amount of debt that has been created by the Treasury. Others are hedging against serious banking issues after the release of the Fed’s bank stress test results late Thursday.

June Crude Oil is bumping up against resistance at $56.00. Speculators have been driving this market higher in anticipation of greater demand because of the impending recovery in the global economy.

Grains have been trading firm this week led by the new bull market in soybeans. July Soybeans reached the $11.00 price driven by production problems in South America and increased demand for U.S. soybeans from China.

News that the Brazilian government is providing price support is helping July Coffee surge to the upside. July Cotton is following the soybean market higher. Greater demand from China as well as the prospect of a global economic recovery is helping to support this market. Increased demand from India is continuing to support July Sugar. India is having a severe production issue which means higher markets this year.

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