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: 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: 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[…]
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[…]