Corn Outlook: Old crop corn futures surged to a record high this week because of tight stocks and the expansionary monetary policy held by the Federal Reserve. At present, the money supply tips $2.4 trillion. Recently, the Fed’s stated that commodity price gains were not the result of their monetary policy, but rather the[…]
Corn Outlook: Last winter, all traders could talk about was the need to plant additional acres of corn in 2011 to fulfill growing demand. This has developed as the USDA increased their planting intentions estimate 5.0 percent to 92.178 million acres. However, stocks will remain tight as quarterly stocks are down 15 percent from[…]
Corn Outlook: It has been a bumpy ride in grain futures the past couple of weeks because of confusion created by the earthquake in Japan and the unrest in the Middle East. Prices cratered shortly after the earthquake, but have since stormed back. During the sell-off, the trend following funds dumped 275 MB from[…]
Corn Outlook: Confusion reigned in the commodity and financial markets this week because of the earthquake in Japan and escalation of the unrest in Libya. Japan’s transportation infrastructure has been severely damaged which will disrupt grain shipments and may cause some cancellations. The Bank of Japan has pumped $180 billion into their economy and[…]
Corn Outlook: Uncertainty breeds uncertainty. This is the situation traders face in the grains. What will the Planting Intentions Report show at the end of the month? Will weather cooperate this spring? Will unrest in the Middle East and escalating energy prices put a damper on the global economy? Traders are currently gazing in[…]
Corn Outlook: While traders eye developments in Libya and the Middle East, the calendar has turned to March and their focus is on planting intentions and weather. Stocks of corn are tight, and a planting delay or adverse growing conditions could draw them down further. In the meantime, we must not lose sight of[…]
Corn Outlook: Grain futures were broadsided this week because of escalating tensions in the Middle East. Protests in Libya have resulted in hundreds of deaths. The unrest raised concerns of potential disruption of oil and grain shipments in the region. Because of the turmoil, the bulls are more cautious. Be advised that the trend[…]
Corn Outlook: Sensitive news in corn will be scarce until planting commences late next month. Meanwhile, USDA’s 2011 baseline acreage projection for corn is larger than expected at 92.0 million, up from 88.2 million in 2010. In addition, there are other private forecasts expecting an increase in acres as well. This briefly tempered bullish[…]
Corn Outlook: China raised lending rates by .25 percent causing a knee-jerk reaction lower in the grains early this week. The rates were ratcheted upward in an effort to fend off inflation and contain prices. However, the rate increase was soon forgotten when the USDA lowered 2010-11 ending corn stocks 70 MB to 675[…]
Corn Outlook: All eyes are on developments in Egypt and the Middle East. The issue is who succeeds President Mubarak, and will there be a peaceful transition? If the Muslim Brotherhood gains control, it will be the worst possible scenario for the interests of the U.S., Europe, and Israel. Meanwhile, the grain and commodity[…]