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[…]
Corn Outlook: Grain traders have put aside concerns regarding the weakening global economy and are focused on production prospects. The corn crop continues to deteriorate as reflected by conditions falling three points to 57 percent in the good-to-excellent category. This is seven points below the five-year average. The greatest decline was in Illinois with[…]
Corn Outlook: The financial markets remain chaotic as there are many obstacles standing in the way of a global recovery. Grain traders are keeping one eye on the outside markets while focusing on supply and weather with the other. After declining for four weeks, the crop rating for corn was steady at 60 percent[…]
Corn Outlook: The recent downgrade of the U.S. debt has shaken investor confidence in a struggling economy. It sent worldwide panic throughout the financial markets causing a slaughter in equities. Stocks fell 16 percent before conditions stabilized. The cry among investors was, “get me out!” Meanwhile, corn weathered the storm during the sell-off as[…]
Corn Outlook: The debt-ceiling dilemma was laid to rest on Tuesday when the Senate approved to raise the debt limit to $2.4 trillion, the largest increase in history. The grains rallied sharply after the announcement as if a weight had been lifted. However, they have since slid on improving weather, signs of a double dip[…]