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[…]
Corn Outlook: The advance in corn stumbled this week because of the increased chance for rain in Argentina and lackluster exports. However, large speculators are not throwing in the towel, just yet. Meanwhile, the trend following funds expanded their long position 195 MB last week to 1.740 BB, while the longs of the index[…]
Corn Outlook: Corn futures picked up where they left off last week by starting Tuesday on a strong note. However, profit taking developed on Wednesday from news of China buying 500,000 tons of Australian feed grade wheat. Rebalancing by the index funds is now complete with their long position being reduced 155 MB to[…]
Corn Outlook: USDA delivered the final 2010 Crop Report this week that had anxiously been awaited by traders and producers. A bullish report was expected and traders were not disappointed. Ending stocks of corn were lowered to 745 MB from 832 MB in December. This was enough of a reduction to fan the flames. […]
Corn Outlook: Corn futures sank to a two-week low this week from the forecast of showers in Argentina. Pressure also came from expectations that the index funds will rebalance their long corn position this month, which may involve selling up to 175 MB. Last week, the trend following funds increased their long corn position[…]
Overview: Corn and soybeans started the session higher today, but met profit taking shortly after the opening. Meanwhile, wheat was up from reports of flooding in the Queensland province of Australia. Equities were stronger on optimism that the economy is headed in the right direction. For now, concerns regarding the debt crisis in Europe have[…]
Corn Outlook: Tight stocks and dryness in Argentina are the factors supporting corn. Although there have been concerns of year-end profit taking by the funds, it has been a nonevent. Last week, the trend following funds added 130 MB to their long position increasing it to 1.655 BB. Meanwhile, the index funds tacked on[…]
Overview: China hiked their lending rate by one-quarter point over the weekend in an effort to cool their economy. However, it had minimal impact on the grains as traders are focused on hot temperatures in Argentina. Be advised that there may be profit taking by the funds this week as they close out 2010. Recently,[…]
Corn futures are underpinned from concerns of dry weather in Argentina, whether sufficient acres will be planted in 2011, and the extension of the 45-cent per gallon ethanol blenders credit. While these factors are currently supporting the market, the debit crisis lurking in Europe is spreading. Moody’s rating service mentioned that France’s AAA rating[…]