Market News
Click here for the
Weather, Futures,
Real-Time Quotes,
Research, and more...
Home
Management Team
Mgmt Notes / News
Market Commentary
Daily Grain Prices
Locations
Services:
>Trucking
>Feed
>Agronomy
>Grain Dept.
>Lumber Dept.
Weather
Classifieds
History of Top-Ag
Board of Directors
Useful Links
Admin Page
Would you like market prices sent to your cell phone daily? We can text the markets to you 3 times a day to help keep you aware of market direction.
And it’s FREE!!
Contact Scott, Mike, or Seth at 618-243-5293 to get set up.
|
|
Archived Market Commentaries:
|
Date:
|
Jan. 6, 2010
|
|
Headline:
|
Closing Grain Comments
|
|
Comments:
|
New investor money continued to flow into commodities on Wednesday, lifting March corn futures to its highest close since June 19th, March CBOT wheat to its highest close since Dec 3rd, & limiting losses in soybeans despite concerns about Chinese import policies & bearish South American weather. Today's grain strength was influenced by an influx of New Year investment flows that also sent crude oil to new 15-month highs, copper to fresh 16-month highs & the CRB Commodity Index to its highest closing level since Oct 14, 2008. Investors have turned downright giddy about prospects for world economic rebound & what that might mean for renewed demand for commodities. With short-term interest rates still near zero, improved confidence about the economic outlook has at least temporarily shifted investment capital away from the proverbial mattress & into assets that have more risk but also a chance of higher reward. Wednesday, March corn futures settled with a top-range 3c gain, March soybeans ended with a mid-range 2c loss, & March CBOT wheat surged to a top-range 14.25c rebound.
Demand-wise, Taiwan rejected all offers in its overnight tender to buy US corn & soybeans, but S Korea purchased .919 mb of non-GMO US soybeans for Feb shipment. S Korean feed mills also bought from Cargill 2.165 mb of optional-origin corn for April arrival. Bean traders were unnerved after China announced overnight it will now require import licenses for soybeans--something already required for poultry & soyoil imports. Skeptics say the soybean licenses will create the potential for the Chinese government to "manage" bean supplies more closely, perhaps allowing them to retaliate after the US recently raised import tariffs on Chinese steel pipe imports. Seed giant Monsanto reported this morning they lost 3c per share in the fiscal quarter ended Nov 30 as sales fell 36%. Their results in South America were especially bad. The company said they expect US farmers to plant 88 million acres of corn & 75 mil.ac. of beans in 2010. Mosaic--the fertilizer company 75% owned by Cargill--also reported poor quarterly results, citing lower fertilizer sales tonnage at reduced prices. But Monsanto & Mosaic were more optimistic about future results. Both saw their stock prices climb solidly higher today after having opened lower. Their stock market moves today mirrored the general strength in commodities.
This afternoon's USDA Weekly Hatchery report showed the nation's broiler industry put 0.1% fewer broiler-type eggs into incubators last week, but placed 0.4% more broiler chicks on feed. Year-on-year placements have been very close to 2008 since October. Looking ahead to Thursday, trade analysts foresee USDA reporting weekly export sales for corn at 15.7-29.5 mb, beans at 14.7-36.7 mb & wheat at 7.3-20.2 mb. With USDA due to release its Annual Crop Production, Quarterly Grain Stocks, Prospective Winter Wheat Plantings, & Monthly Supply/Demand reports next Tuesday, trader positioning will be a major trading factor as that day approaches.
Weather woes pushed local corn basis another 7c higher on Wednesday, but bean basis was stable & wheat basis declined 5c. Ice flows are stacking up near Alton. That river shipment impediment won't improve quickly with sub-zero temps forecast in the Midwest into the weekend.
Would you like CBOT futures prices reported to your phone? Top Ag can send you nearby & harvest futures prices for corn, soybeans & wheat at 9:45 am, 11:15 am & 1:45 pm each day. We provide the service for free, but you may have to pay for text messages--depending upon your phone plan. Give Scott, Mike or Seth a call at the Okawville elevator at 243-5293 & we'll get you set up!
"Closing Comments" are written by David Marshall, Toay Commodities Futures Group LLC, Nashville, IL. To learn more about his farm marketing advisory or commodity brokerage services, contact him at dmarshall@tcfg-llc.com or call (618) 327-4370 (voice/fax) or (618) 314-0918 (cell). This commentary is not intended for specific trading strategies. We strive to insure this information is reliable, but we cannot guarantee its accuracy or completeness. Commodity trading involves risks. You should fully understand those risks before trading.
|
|
|
