Morning 5-18

Buy’em Up Stocks worldwide higher Dax +3%,Cac +2.5%, Italy +1.45%,NKY closed +.5% even though Japan reported back to back negative Quarterly GDP prints, Spoos +2.24%,Nasdaq +1.8%,Russell +4.7%.Optimism that Virus lockdowns are  nearing an end a reason for the strength, from Trading Economics “ California Governor said about 75% of state businesses are open and more parts of New York State are now eligible to lift some restrictions” …. from WSJ “In Texas, gyms and movie theaters are set to reopen on Monday, despite a rise in infections and virus-related deaths there. Idaho on Saturday allowed dine-in restaurants to resume operations under social-distancing rules. New Jersey permitted chartered-boat services and watercraft rentals to resume on Sunday” …….  A piece of Chairman Powell’s interview being flagged as a  reason for some of the Strength as well “Fed chair Powell underscoring that the central bank has “no limit” to what they can do to support the economy and that they remain committed to do so.” (Forex live) …  Moderna says two vaccines are getting positive  testing results through the first  two phases of trials…China oil Demand back to pre-crisis levels Bloomberg reporting that gasoline  demand continues to move higher  CL +9.45% Brent +6%…China Preparing to boost inventories of corn and Soybeans(Pro Farmer)  soy beans +1%  Corn +.6%

U.S. treasury yields Lower ,Bunds steady  but Italian yields Lower by ~7bps, Risk On Move dictating the trade so far today  Silver +4.4%.Gold +.4% Dollar down a bit but it has been stuck in the range of 100.87- 98.81 for almost two months! It needs to pick a direction and go; I believe the best for markets would be a breakout to the downside. Reminder that Fed once again lowered the Weekly amount of QE purchases by $1B slow and steady decrease seems to be working well.Bitcoin traded above 10K over weekend.

The week ahead from pro farmer:

… “President Donald Trump will deliver remarks Tuesday regarding farmers, ranchers and the U.S. food supply chain. He will also hold a Cabinet meeting Tuesday. After Democrats passed its $3 trillion-plus stimulus measure Friday, House Majority Leader Steny Hoyer’s (D-Md.) office told members not to expect votes this week. The House is set to be in session on May 27 and 28. Hoyer said some members may return to Washington this week for committee meetings. Key economic data include Housing Starts Tuesday and Existing Home Sales Thursday, along with another snapshot of initial jobless claims. There are also earnings reports from big retailers, including from Walmart, Home Depot and Target — on the ag/food industry front, Hormel reports Thursday and Deere on Friday. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify before Senate Banking Committee on Tuesday at a hearing on the CARES Act. The Federal Open Market Committee will release the minutes from its monetary policy meeting in late April. On Thursday USDA will release its monthly Cold Storage Report and on Friday it will issue its monthly Cattle on Feed Report.

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