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[…]
Overview: Grain futures were literally mugged last Friday on concerns that China will raise interest rates in an effort to cool their economy. However, prices recovered today erasing much of their losses as the sell-off was thought overdone. Keep in mind that the funds are holding a record long position in soybeans and a near[…]
Grain futures rallied sharply today, but the “adrenalin rush” cooled off after the opening. There was no surprise in USDA’s corn and wheat ending stocks estimate, but traders were caught off guard by the reduction of soybeans to 185 MB. However, profit taking developed around mid session creating reversal patterns in corn and wheat. The[…]
Overview: Corn and soybeans were weak today while wheat was higher. Traders were nimble in their interest with many sitting on the sidelines until after the report. They remember all too well the volatility and knee jerk reaction created from the September Grain Stocks Report and the October Crop Report a few weeks ago. Guesses[…]
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[…]
With a 1/3rd decline in export inspections, you can believe that investors were nervous about US Wheat Trade, add to that the dollar gaining strength abroad and the readers of Bloomberg wanted to know what was going on. Where does Bloomberg turn for reliable news on the grain trade? The same place that farmer’s do:[…]
Overview: The grains were firm in the overnight session, but lost their momentum during the pit trade because of the rebound in the dollar. While the Commitment of Traders Report on Friday showed that the fund long position in corn is below the record set in early October, their longs in soybeans has risen to[…]
Overview: China unexpectedly raised their lending rate for the first time in three years by one-quarter point. This caused the dollar to soar, the Dow lose nearly 200 points, and gold to tank nearly $40 today. As a result, there was a sharp knee-jerk reaction lower the grains. Traders fear that China’s action may cool[…]