Corn Outlook: Traders celebrated when they returned from the New Year holiday as the stock market surged and the grains rallied. Optimism regarding Europe led to the strength in equities. While pumping money into their financial system to resolve the debt crisis is a band-aid measure, it does not fix the problem. However, cutting[…]
Corn Outlook: Very little news is coming out of Europe, which has prompted speculators to shift their focus to weather in South America rather than the debt crisis. Conditions are dryer than normal, especially in Argentina, which has created a surge in grain futures. During the holidays, volume tends to be thin as commercial[…]
Corn Outlook: Grain futures can be listless during the holidays but, at times, erratic because of lack of liquidity and year-end position squaring as we are seeing now. Sometimes, it does not require much news to push prices to an extreme. For example, recent dryness in South America sparked an 8.4 percent rise in[…]
Corn Outlook: The ship for the grains is listing, and the funds are bailing. Although domestic stocks of corn are tight and dryness is creeping into South America, they are overshadowed by other issues. World stocks are on the upswing, China’s production is rebounding, and U.S. exports face stiff competition from the southern hemisphere. […]
Corn Outlook: Grain futures are struggling amid uncertainty surrounding the European debt crisis and poor exports. Currently, traders are unsure which way to turn going into the EU summit meeting on Thursday-Friday. Anxiety is high as there are fifteen countries facing a potential credit rating downgrade. The reality is there is no quick fix[…]
Corn Outlook: Grain futures rebounded this week amid optimism that Europe is closer to resolving its debt crisis. The move by the Federal Reserve and world central banks to increase liquidity by reducing the rate for U.S. dollar swaps is literally grasping for straws. Intervention alone is not a long-term fix for Europe’s economy. […]
Corn Outlook: Corn futures have been on a slippery slope the past two weeks amid concerns of the worsening debt crisis in Europe, potential slowing of China’s economy, large traders abandoning their stake in commodities, and bankruptcy of MF Global. Competition for export business from the Black Sea region has been fierce evident by[…]
Corn Outlook: Corn futures cratered this week amid sluggish demand, weakness in the outside markets, and ongoing uncertainty surrounding the debt crisis in Europe. Conditions are becoming worse as bond yields in Italy, Ireland and Spain are soaring and reaching the point of being unsustainable. Meanwhile, the next crisis in Europe will likely be[…]
Corn Outlook: A new coalition government is being formed in Greece, but problems are brewing in Italy. Italy may be the next domino to fall as their bond yields have soared to over 7.0 percent. Be advised that Europe’s debt crisis is worsening caused by decades of fiscal mismanagement. Structural reform is needed to[…]
Corn Outlook: Investors were jubilant last week thinking that Greece’s debt problem had been resolved. Faces are grimmer this week as their prime minister announced a referendum on the bailout plan fueling fear of a default. Meanwhile, there are rumors that he may resign with the referendum being scrapped. Adding to the confusion, MF[…]