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[…]
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[…]
Corn Outlook: Temperatures are soaring in corn futures keeping traders nerves frayed. Prices were slammed two weeks ago because of the bearish stocks report. However, the heat turned up the following week when the USDA slashed their yield estimate to 155.8 bpa from 162.5 bpa. With over a $2.00 price swing within a two-week period,[…]
Overview: Corn and soybeans were higher again today as the funds are buying back the positions that they liquidated early last week. Right now, traders are wildly bullish, which is predictable considering the bullish USDA report on Friday and the current stage of the pattern that we are in now. However, as I mentioned in[…]