Corn Outlook: Tight stocks and strength in wheat are the factors supporting corn. In addition, extending the Bush tax cuts and unemployment benefits are seen as increasing the deficit and bearish the dollar. Meanwhile, exports are lethargic and running 29 percent below the pace needed to reach USDA’s projection of 1.950 BB. Inspections last[…]
Corn Outlook: Corn futures are torn between bullish and bearish forces. Stocks are at their tightest level since 1995-96. Meanwhile, uncertainty among traders has heightened because of potential spreading of the debt crisis in Europe. Because of this, traders are in a quandary regarding the direction of the market. Until confidence is restored regarding[…]
Overview: Ireland is getting a $113 billion bailout, which did little to ease investor concerns as the dollar continues to climb. Ideas are that additional funding will be needed. Keep in mind that debt problems lurk in Portugal and Spain as well, and will likely spread to other countries in Europe. Meanwhile, tensions remain between[…]
Corn Outlook: Hunting season was declared on the corn bulls in early November because of Europe’s sovereign debt crisis and the uncertain status of ethanol credits. During this time, the dollar rose 5.0 percent causing corn futures to shed 15.7 percent of their value. As a result, the trend following funds liquidated 240 MB[…]
Overview: Grain futures have calmed down the past few sessions, but volatility is going to stick with us for a while. Keep in mind that the market will be closed on Thursday for Thanksgiving and open until noon on Friday. Many traders will close up shop tomorrow or Wednesday and take a long weekend. This[…]
Corn Outlook: Fear of a rate increase in China and debt woes in Ireland sent shivers throughout commodities causing a sell-off in the grains early this week. Meanwhile, debt problems are heating up in Portugal and Greece. Gold tanked and the dollar rose. We must remember that the sovereign debt issue in developed countries[…]
Corn Outlook: Corn futures are being supported by the Fed’s proposed quantitative easing program that is weighing on the dollar. In addition, traders are bullish expecting the USDA to lower their yield estimate in the crop report next week from the current forecast of 155.8 bpa. In other developments, export inspections were disappointing at[…]
Corn Outlook: Corn futures are winded. No wonder; they have risen 54 percent since June, while the long position of the funds has grown to a record 4.255 BB. The funds could be their own worst enemy as was the case when prices collapsed in 2008. In other developments, USDA projects corn stocks as of[…]
Corn Outlook: Buy and hold, corn is the new yellow gold! Exuberance in corn is becoming high-pitched, similar to 2008. This is evident by the fund long position swelling to a record 4.2 BB. Although the market is over-bought, the bubble does not seem ready to burst yet. Prices are currently supported by disappointing yields[…]
The good news is corn may be approaching multi-year highs, the bad news it, you probably won’t have much of it to sell if the current harvest reports are to be believed. Dewey Strickler explains as he analysis the week’s activity from the CBOT and what it means for the nation’s farmers. Corn Outlook: Exuberance in corn abounds from[…]