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[…]
Corn Outlook: Optimism abounds that Europe is on the road to recovery. However, the summit agreement for a 50 percent write down of the Greek debt and increasing the rescue fund to $1.4 trillion will only be a band-aid. No structural changes are being implemented. Their measure will cut Greece’s debt to GDP ratio[…]
Corn Outlook: Corn futures face crosscurrents from uncertainty surrounding Europe’s debt crisis, harvest pressure, and prices falling to a level that is attracting end users. Weather has been cooperative allowing harvest to progress quickly at 47 percent complete compared to the average of 41 percent. China recently reported third quarter GDP at 9.1 percent,[…]
Corn Outlook: Corn futures have found traction after plummeting 26.5 percent since August. Bloodletting by the funds has subsided with their long position falling to 575 MB from the peak in September at 1.355 BB. Since 2010, large speculators have been the driving force in commodities. However, because of increased volatility and economic uncertainty[…]
Corn Outlook: Is there light at the end of the tunnel for the grains? Since late August, they have endured relentless selling by the funds because of the debt crisis in Europe. The contagion is spreading as Italy’s debt rating was downgraded this week. Traders have left commodities and paper assets in droves. Last week,[…]
Corn Outlook: Corn futures have undergone a brutal pounding during September. The factors causing the sell-off are a weakening global economy and the sovereign debt crisis in Europe. The chaos in the financial markets caused the trend following funds to unload 200 MB of their long corn position last week reducing it to 1.015[…]
Corn Outlook: September has been brutal for the bulls, as corn prices have fallen 16.8 percent from their high. Weakness stems from the increased probability that Greece will default on its debt and disappointment with the Federal Reserve’s latest effort to boost the economy with Operation Twist, a plan to reduce long-term interest rates. […]
Corn Outlook: USDA confirmed a smaller corn crop when they lowered their yield estimate to 148.1 bpa from 153.0 bpa in August. This is higher than Ag Watch’s forecast of 144.8 bpa. Ending stocks for the 2011-12 crop are projected at 672 MB. In other developments, the trend following funds have been on the[…]
Corn Outlook: Grain futures began on a weak note after Labor Day, as anxiety about the sovereign debt crisis in Europe resurfaced. Rumors circulated that 4-5 European banks could be in danger of failing. Keep in mind that major banks in the U.S. have exposure to the debt crisis as well. Meanwhile, uncertainty regarding[…]
Corn Outlook: Heat stress that occurred during July shows as yield prospects are growing dimmer. Late planted corn will prove to be the biggest casualty as harvest progresses. Yield reports, so far, are disappointing. Currently, 54 percent of the corn crop is rated in good-to-excellent condition, a decline of 3 percent from the previous[…]